Moreno Industries_Direct Materials Purchases Budget

Moreno Industries has adopted the following
production budget for the first 4 months of 2013.
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,
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.

Complete
the direct materials purchases budget by month for the first quarter.

MORENO
INDUSTRIES
Direct
Materials Purchases Budget
For
the Quarter Ending March 31, 2013

January
February March
× × ×
Total pounds needed for production
Add:
Total materials required
Less:
Direct materials purchases × $ × $ × $
Total cost of direct materials purchases $ $