Moreno Industries has adopted the following production budget for the first 4 months of 2011. Month Units Month Units January 10,000 March 5,000 February 8,000 April 4,000 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements. Complete the direct materials purchases budget by month for the first quarter. MORENO INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2011 January February March Desired ending direct materialsCost per poundUnits to be producedDirect materials per unitBeginning direct materials Direct materials per unitUnits to be producedCost per poundDesired ending direct materialsBeginning direct materials Total pounds needed for production Add: Cost per poundUnits to be producedDesired ending direct materialsDirect materials per unitBeginning direct materials Total materials required Less: Units to be producedCost per poundDirect materials per unitDesired ending direct materialsBeginning direct materials Direct materials purchases Units to be producedDirect materials per unitDesired ending direct materialsBeginning direct materialsCost per pound $ $ $ Total cost of direct materials purchases $ $ $