Direct material purchases and budgeted payments Campbell Manufacturing intends to start a business on January 1. Production plans for the first four months of operations are as follows: January 28,000 units February 70,000 units March 98,000 units April 98,000 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 purchase 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 0 Answer 0 Answer 0 Answer 0 Pounds per unit x 2 x 2 x 2 x 2 Pounds needed Answer 0 Answer 0 Answer 0 Answer 0 EI in pounds Answer 0 Answer 0 Answer 0 Answer 0 Total required Answer 0 Answer 0 Answer 0 Answer 0 Less BI Answer 0 Answer 0 Answer 0 Answer 0 Pounds to purchase Answer 0 Answer 0 Answer 0 Answer 0 Cost per pound x $7 x $7 x $7 x $7 Total cost of RM Answer 0 Answer 0 Answer 0 Answer 0 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 0 Answer 0 Answer 0 Answer 0 February purchases Answer 0 Answer 0 Answer 0 Answer 0 March purchases Answer 0 Answer 0 Answer 0 Answer 0 Total Answer 0 Answer 0 Answer 0 Answer 0