DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,230 March 5.450 February 8.200 April 4.290 Each unit requires 5 pounds of raw materials costing $4 per pound on December 31, 2019, the ending raw materials inventory was 10,230 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 DEWITT INDUSTRIES Direct Materials Purchases Budget January February 10230 Units to be produced 5 Direct Materials Per Unit 51150 Total Pounds Needed for Production 8200 Add V: Desired Ending Direct Materials (Pounds) 59350 Total Materials Required 10230 Less v Beginning Direct Materials (Pounds) 5 Direct Materials Per Unit 51150 Total Pounds Needed for Production 8200 Add Desired Ending Direct Materials (Pounds) 59350 Total Materials Required -10230 Less V: Beginning Direct Materials (Pounds) 49120 Direct Materials Purchases 4 $ Cost Per Pound 196480 $ Total Cost of Direct Materials Purchases March January February 10230 5 51150 8200 59350 - 10230 i 49120 $