Question

DeWitt Industries has adopted the following production budget for the first 4 months of 2020.

Month		Units		Month		Units
January		10,230		March		5,410
February		8,150		April		4,500

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2019, the ending raw materials inventory was 6,138 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 choose the accounting period                                                          For the Month Ending March 31, 2020March 31, 2020For the Quarter Ending March 31, 2020
		January		February		March
select an opening materials purchases budget item                                                          Cost Per PoundTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Materials RequiredDirect Materials Per UnitDirect Labor Cost Per HourUnits to be ProducedDirect Labor Time Per UnitBeginning Direct Materials (Pounds)Total Pounds Needed for ProductionDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Total Direct Labor Cost		enter a number of units		enter a number of units		enter a number of units

Answer 1