DeWitt Industries has adopted the following production budget for the first 4 months of 2017.

Month		Units		Month		Units
January		10,170		March		5,190
February		8,470		April		4,310

Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2016, the ending raw materials inventory was 10,170 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.

Question 1 DeWitt Industries has adopted the following production budget for the first 4 months of 2017. Month Month Units Units 5,190 January 10,170 March 4,310 February 8,470 April Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2016, the ending raw materials inventory was 10,170 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. DEWITT INDUSTRIES Direct Materials Purchases Budget Janua February March