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Rider Auto has developed the following production plan for its new auto part. January February March April 12,000 Budgeted production (units) 8,000 13,000 15,000 Each
Rider Auto has developed the following production plan for its new auto part. January February March April 12,000 Budgeted production (units) 8,000 13,000 15,000 Each unit contains 4 pounds of raw material. The desired raw materials ending inventory is 40% of the next month's production needs, plus an additional 100 pounds. January's beginning inventory meets this requirement. Prepare the direct materials purchases budget for the first three months of the coming year. (Round answers to 0 decimal places, e.g. 5,275.) January February March Quarter Budgeted production 12000 8000 13000 15000 Standard pounds per unit 4 Production needs 48000 32000 52000 60000 Budgeted ending inventory 12900 20900 Total DM required (Ibs.) 60900 52900 Beginning inventory 12900 20900 Budgeted purchases (lbs.) 40000
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