Campbell Manufacturing intends to start business on January 1. Production plans for the first four months of operations are as follows:

January	44,000	units
February	110,000	units
March	154,000	units
April	154,000	units

Each unit requires two pounds of material. The firm would like to end each month with enough raw material to cover 25 percent of the following months production needs. Raw material costs $7 per pound. Management pays for 40 percent of purchases in the month of purchase and receives a 10 percent discount for these payments. The remaining purchases are paid in the following month, with no discount available. a. Prepare a purchases budget for the first quarter of the year in units, in total, and in dollars. Note: Do not use a negative sign with your answers.

	January	February	March	Quarter
Units produced	Answer	Answer	Answer	Answer
Pounds per unit	x 2	x 2	x 2	x 2
Pounds needed	Answer	Answer	Answer	Answer
EI in pounds	Answer	Answer	Answer	Answer
Total required	Answer	Answer	Answer	Answer
Less BI	Answer	Answer	Answer	Answer
Pounds to purchase	Answer	Answer	Answer	Answer
Cost per pound	x $7	x $7	x $7	x $7
Total cost of RM	Answer	Answer	Answer	Answer

b. Determine the budgeted payments for purchases of raw material for each of the first three months of operations and for the quarter in total.

Payments
	January	February	March	Quarter
January purchases	Answer	Answer	Answer	Answer
February purchases	Answer	Answer	Answer	Answer
March purchases	Answer	Answer	Answer	Answer
Total	Answer	Answer	Answer	Answer