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Ivanhoe Industries has adopted the following production budget for the first 4 months of 2022. Month Units Month Units January 8,600 March 4,300 February 6,880

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

Month

Units

Month

Units

January 8,600 March 4,300
February 6,880 April 3,440

Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2021, the ending raw materials inventory was 3,440 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.

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