Question

Exercise 13-5 Pina Industries has adopted the following production budget for the first 4 months of 2017. Month Units Month Units 10,470 March January 5,490 February 8,260 April 4,450 Each unit requires 5 pounds of raw materials costing $2 per pound. On December 31, 2016, the ending raw materials inventory was 9,270 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. PINA INDUSTRIES Direct Materials Purchases Budget February March January $ $ $ $ $

Answer 1

direct material purchase budget
particular	January	February	march
material required for production	52,350	41,300	27,450
closing stock	8,260	5,490	4,450
total requirement	60,610	46,790	31,900
less: opening stock	9,279	8,260	5,490
purchase of raw material	51,331	38,530	26,410
in dollar	1,02,662	77,060	52,820