DeWitt Industries has adopted the following production budget for the first 4 months of Month Units Month January 10,000 March February 8,000 April 4,000 Units 5,000 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 4,000 pounds. Management war 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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DeWitt Industries has adopted the following production budget for the first 4 months of 2020.
Month
January
February
Units Month Units
10,000 March 5,000
8,000 April
4,000
Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 4,000 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..
Transcribed Image Text:DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month January February Units Month Units 10,000 March 5,000 8,000 April 4,000 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 4,000 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..
DEWITT INDUSTRIES
Direct Materials Purchases Budget
$
$
January
$
$
February
$
$
March
Transcribed Image Text:DEWITT INDUSTRIES Direct Materials Purchases Budget $ $ January $ $ February $ $ March
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