Babu Enterprise sells packaged baby foods for $70/unit and is preparing budget for the 1st quarter of 2020. His actual and budgeted data include:

Details . . . . . . . . . . . . Nov 2019 . . . Dec 2019 . . . Jan 2020 . . . Feb 2020 . . . Mar 2020 . . . Apr 2020 . . . May 2020

Production in units . . . . . 5600 . . . . . . 8300 . . . . . . 4200 . . . . . . 5500 . . . . . . . 6600 . . . . . . 5400 . . . . . . 5600

Each unit of product requires 10 kilograms of raw materials to produce. And Babu keeps an ending inventory of raw materials equal to 50% of the following month’s production needs of raw materials. The price of raw material is $2/kilogram. An advance payment of 40% is to be made a month prior to purchase. 10% is paid in the month of purchase. The rest is paid in the month following purchase. Instructions: For the 1st quarter of 2020 answer, on your rough-copy/notebook prepare.

(A) Direct Materials Budget and then answer the following questions:

(a) The production needs of February was _______ kilogram.

(b) The ending inventory of raw materials in January was _______ kilogram.

(c) The beginning inventory of raw materials for the 1st quarter of 2020 is _______ kilogram.

(d) The purchases of raw materials in kilogram for the month of March is _______ kilogram.

(e) The purchases of raw materials in $ for the month of February is $_____________

(f) The purchases of raw materials in $ for the 1st quarter of 2020 is $_____________

(g) The amount of accounts payable at the end of the 1st quarter of 2020 is $_____________