CALCULATOR CR Exercise 22-05 (Video) Wildhorse Industries has adopted the following production budget for the first 4 months of 2020 Month Units Month Units January 10,430 March 5,130 February 8,210 April 4.470 Each unit requires pounds of raw materials costing 5) per pound. On December 31, 2019, the ending raw materials inventory was 6,258 pounds. Management wants to have a raw materials Inventory at the end of the month equal to 20% of next month's production requirements Prepare a direct materials purchases budget by month for the first quarter. WILDHORSE INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2020 January February March Units to be Produced 10430 8210 5130 Direct Materials per un Total Pounds Needed for production 31290 24630 15390 Add Dewred Ending Direct Materials (Pounds) Total Material required Beginning Direct Materials (Pounds) Prepare a direct materials purchases budget by month for the first quarter. WILDHORSE INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2020 January February March Units to be produced 10430 8210 5130 Direct Materials Per Unit 3 3 3 Total Pounds Needed for Production . 31290 24630 15390 Add . Desired Ending Direct Materials (Pounds) Total Materials Required Less 4. Beginning Direct Materials (Pounds) Direct Materials Purchases Cost Per Pound 3 $ Total Cost of Direct Materials Purchases