Reference no: EM131765250

Question - Dewitt Industries has adopted the following production budget for the first 4 months of 2012.

Month                  Units                     Month                  Units

January               10,000                   March                   5,000

February              8,000                     April                    4,000

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2011, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.

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