Question

Exercise 9-5 (Video) Dewi Industries has adopted the following production budget for the first months of 2070 Month January February Units 10,150 8,330 Month March April Units 5,410 10 Each unit requires 3 pounds of raw materials costing 2 per pound. On December 31, 2019, the ending raw materials inventory was 6,000 pounds Management wants to ha the end of the month equal to 20% of next month's production requirements Prepare a direct material purchases budget by month for the first quarter DEWITT INDUSTRIES Direct Materials Purchases Budget d e to Show Work for this questions Open Show Work

Answer 1

February 8,380 March 5,410 Direct Materials Purchase Budget January Units to be produced 10,150 Multiply by: Quantity of direct materials needed per unit Materials needed for production (lbs.) 30,450 Plus: Desired ending inventory of direct materials 5,028 Total materials requirements (lbs.) 35,478 Less: Beginning inventory of direct materials 6,090 Materials to be purchased (lbs.) 29,388 Multiply by: costs per pound $ 2.00 Total Budgeted direct material cost $ 58,776 April 4,320 3 pounds 12,960 (20% of next month's production needs) 25,140 3,246 28,386 5,028 23,358 2.00 46,716 16,230 2,592 18,822 3,246 15,576 2.00 31,152 (20% of current month's production needs) $ $ $ $