Exercise 21-5 Your answer is partially correct. Try again DeWitt Industries has adopted the following production budget for the first 4 months of 2017 Month January Februany Units Units Month 10,440 March 8,240 April 5,190 4,120 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2016, the ending raw materials inventory was 9,500 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 January February March Units to be Produce 1044 8420 190 Cost Per Pound otal Pounds Needed for Production 132 25260 5570 dd. Desired Ending Direct Material 4120 8420 5190 otal Materials Required 39740 30450 19690 Less: Beginning Direct Materials 500 8420 5190 30240 irect Materials Purchase 22030 14500 3 3 3 st Per Poun 90720 66090 43500 otal Cost of Direct Materials Purchase