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.