Question

DeWitt Industries has adopted the following production budget for the first 4 months of 2020.

Month		Units		Month		Units
January		10,230		March		5,410
February		8,150		April		4,500

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 choose the accounting period                                                          March 31, 2020For the Quarter Ending March 31, 2020For the Month Ending March 31, 2020
		January		February		March
select an opening materials purchases budget item                                                          Direct Materials Per UnitDesired Ending Direct Materials (Pounds)Total Direct Labor CostTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitCost Per PoundTotal Pounds Needed for ProductionUnits to be ProducedTotal Required Direct Labor HoursTotal Materials RequiredDirect Materials PurchasesDirect Labor Cost Per HourBeginning Direct Materials (Pounds)		enter a number of units		enter a number of units		enter a number of units
select an item                                                          Direct Labor Cost Per HourCost Per PoundUnits to be ProducedDirect Labor Time Per UnitTotal Direct Labor CostDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Materials RequiredDirect Materials Purchases		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the first part                                                          Direct Labor Time Per UnitDirect Materials PurchasesBeginning Direct Materials (Pounds)Direct Labor Cost Per HourTotal Pounds Needed for ProductionTotal Required Direct Labor HoursUnits to be ProducedCost Per PoundDesired Ending Direct Materials (Pounds)Direct Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials Required		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part
select between addition and deduction                                                          AddLess: select an item                                                           Total Required Direct Labor HoursTotal Materials RequiredDirect Materials PurchasesBeginning Direct Materials (Pounds)Direct Materials Per UnitUnits to be ProducedDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesCost Per PoundTotal Direct Labor CostDirect Labor Time Per UnitTotal Pounds Needed for ProductionDirect Labor Cost Per Hour		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the second part                                                          Direct Materials PurchasesDirect Materials Per UnitTotal Direct Labor CostDirect Labor Time Per UnitDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursDirect Labor Cost Per HourBeginning Direct Materials (Pounds)Total Materials RequiredTotal Cost of Direct Materials PurchasesUnits to be ProducedTotal Pounds Needed for ProductionCost Per Pound		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part
select between addition and deduction                                                          AddLess: select an item                                                           Desired Ending Direct Materials (Pounds)Total Required Direct Labor HoursDirect Labor Cost Per HourTotal Pounds Needed for ProductionDirect Labor Time Per UnitCost Per PoundTotal Materials RequiredDirect Materials Per UnitTotal Direct Labor CostUnits to be ProducedBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Materials Purchases		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the third part                                                          Direct Materials Per UnitDirect Materials PurchasesTotal Direct Labor CostBeginning Direct Materials (Pounds)Total Required Direct Labor HoursDirect Labor Cost Per HourDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionUnits to be ProducedTotal Cost of Direct Materials PurchasesCost Per PoundTotal Materials RequiredDirect Labor Time Per Unit		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part
select an item                                                          Total Pounds Needed for ProductionDirect Labor Time Per UnitTotal Cost of Direct Materials PurchasesTotal Materials RequiredDirect Labor Cost Per HourTotal Required Direct Labor HoursDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Total Direct Labor CostBeginning Direct Materials (Pounds)Cost Per PoundDirect Materials Per UnitUnits to be Produced		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing materials purchases budget item                                                          Direct Labor Cost Per HourTotal Required Direct Labor HoursDirect Materials PurchasesDesired Ending Direct Materials (Pounds)Units to be ProducedDirect Materials Per UnitTotal Pounds Needed for ProductionTotal Materials RequiredTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitTotal Direct Labor CostCost Per PoundBeginning Direct Materials (Pounds)		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

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Answer 1

Direct material purchase budget

	January	February	march	Total
Production Units	10230	8150	5410	23790
Raw material per unit	3	3	3	3
Raw material needed for production	30690	24450	16230	71370
Add: Desired ending inventory	4890	3246	2700	2700
Total	35580	27696	18930	74070
Less: Beginning inventory	-6138	-4890	-3246	-6138
Raw material purchase	29442	22806	15684	67932
Cost per pound	2	2	2	2
Raw material purchase cost	58884	45612	31368	135864