production budget for the first 4 months of 2013.
Units Month Units
10,000 March 5,000
unit requires 3 pounds of raw materials costing $2 per pound. On December 31,
2012, 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.
the direct materials purchases budget by month for the first quarter.
Materials Purchases Budget
the Quarter Ending March 31, 2013
Ã— Ã— Ã—
Total pounds needed for production
Total materials required
Direct materials purchases Ã— $ Ã— $ Ã— $
Total cost of direct materials purchases $ $