Crane Industries has adopted the following production budget for the first $4$ months of $2027.$

Each unit requires $2$ pounds of raw materials costing $$3$ per pound. On December $31,2026,$ the ending raw materials inventory

was $4,240$ 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.

CRANE INDUSTRIES

Direct Materials Purchases Budget