Apex Industries has projected the following production budget for the first four months of 2019.

January 10,000 Units

February 8,000 Units

March 5,000 Units

April 4,000 Units

Each unit requires 3 pounds of material which costs $ 4.50 per pound. At the beginning of January, the stock of Raw Materials was 10,000 pounds. Management requires a closing inventory of raw materials equal to 25% of the next months production.

Required:

Prepare a monthly direct Materials Purchases Budget for the first quarter of 2019.

10 Marks