Current Attempt in Progress

Waterway Industries has adopted the following production budget for the first 4 months of 2022.

Month		Units		Month		Units
January		12,800		March		6,400
February		10,240		April		5,120

Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 5,120 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next months production requirements. Prepare a direct materials purchases budget by month for the first quarter.