Question 4 DeWitt industries has adopted the following production budget for the first 4 months of 2020. Month Units Month 10.230 March 8,150 April Units 5,410 4,500 January February Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2019, the ending raw materials inventory was 6,138 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 Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2019, the ending raw materials inventory was 6,138 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 For the Quarter Ending March 31, 2020 January February March Units to be produced 10,230 8,150 5,4101 Direct Materials per Unit 3 Total Pounds Needed for Production 30,690 24,450 16,23 Add Desired Ending Direct Materials (Pounds) 4,890 3,246 2,700 Total Materials Required 35,500 27,696 18,930 Less till Beginning Direct Materials (Pounds) 9,130 3,246 Direct Materials Purchases . 26,450 22,806 15,684 Cost Per Pound . 52,900 Total Cost of Direct Materials Purchases 45,612 31,368