Gosh-bv- Golly Industries has adopted the follow ing production budget for the first 4 months of 2003.

Each unit requires 5 pounds of raw materials costing $1.50 per pound. On December 31, 2002, the ending raw materials inventory was 25,000 pounds. Management wants to have a raw materials inventor) at the end of each month equal to 50% l next month's production requirements.

Instructions

Prepare a direct materials budget by months for the first quarter Prepare a direct materials budget by months for the first quarter

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Month Units Month Units January 10,000 March 6,000 February 8,000 April 4,000