Outlier has an inventory policy in place where purchases of raw materials are scheduled to be 65% of the next month's anticipated production needs.

Schedule 3 Direct Materials Purchases Budget July Aug Sept Total Chemical-A (Litres) Budget Use in Production Target Ending Inventory Units Required Beginning Inventory Total Litres Purchased Chemical-A Purchase Costs Chemical-B (Litres) Budget Use in Production Target Ending Inventory Units Required Beginning Inventory Total Litres Purchased Chemical-B Purchase Costs Total DM Purchases Budget $ 21,208