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DeWitt Industries has adopted the following production budget for the first 4 months of 2020.
Month units
January 10340
march 5440
february 8480
april 4230
Each unit requires 3 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory was 6,204 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements.
Problem 1: Prepare a direct materials pruchases budget by month for this first quarter
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