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

Question:

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

Month           Units
January        10,000
February       8,000
March           5,000
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.


Instructions

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-1119392132

3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: