Each unit requires 5 pounds of raw materials costing 3 per

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Dallas Industries has adopted the following production budget for the first 4 months of 2014.

Month


Units


Month


Units

January
10,340
March
5,160
February
8,290
April
4,200

Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2013, the ending raw materials inventory was 9,320 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements.

Prepare a direct materials purchases budget by month for the first quarter.

DALLAS INDUSTRIES
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2014



January


February


March


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Reference no: EM13572502

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