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Paseo Industries has adopted the following production budget for the first 4 months of 2013. Month Units Month Units January 10,770 March 5,090 February 7,890

Paseo Industries has adopted the following production budget for the first 4 months of 2013.

Month

Units

Month

Units
January
10,770
March
5,090
February
7,890
April
3,950


Each unit requires 5 pounds of raw materials costing $2 per pound. On December 31, 2012, the ending raw materials inventory was 8,770 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month, Prepare a direct materials purchases budget by month for the first quarter.

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