Question

Exercise 22-05

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

Month		Units		Month		Units
January		10,470		March		5,440
February		8,470		April		4,340

Each unit requires 4 pounds of raw materials costing $4 per pound. On December 31, 2019, the ending raw materials inventory was 8,376 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 Labor Cost Per HourDirect Labor Time Per UnitBeginning Direct Materials (Pounds)Direct Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Required Direct Labor HoursCost Per PoundUnits to be ProducedTotal Materials RequiredDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Total Pounds Needed for Production		enter a number of units		enter a number of units		enter a number of units
select an item Cost Per PoundDirect Materials Per UnitUnits to be ProducedTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Required Direct Labor HoursDesired Ending Direct Materials (Pounds)Direct Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesBeginning Direct Materials (Pounds)Total Materials RequiredTotal Pounds Needed for Production		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the first part Total Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDirect Labor Cost Per HourUnits to be ProducedBeginning Direct Materials (Pounds)Cost Per PoundDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Direct Labor Time Per UnitDirect Materials Purchases		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 Direct Materials PurchasesUnits to be ProducedTotal Required Direct Labor HoursBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesCost Per PoundTotal Direct Labor CostTotal Materials RequiredDirect Materials Per UnitDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionDirect Labor Cost Per HourDirect Labor Time Per Unit		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the second part Cost Per PoundDirect Labor Cost Per HourTotal Materials RequiredDirect Materials PurchasesUnits to be ProducedBeginning Direct Materials (Pounds)Desired Ending Direct Materials (Pounds)Direct Labor Time Per UnitDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Pounds Needed for ProductionTotal Required Direct Labor Hours		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 Cost Per PoundDirect Labor Cost Per HourTotal Required Direct Labor HoursDesired Ending Direct Materials (Pounds)Direct Labor Time Per UnitTotal Materials RequiredTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)Units to be ProducedDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor Cost		enter the amount of pounds		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the third part Beginning Direct Materials (Pounds)Units to be ProducedDesired Ending Direct Materials (Pounds)Cost Per PoundDirect Labor Cost Per HourTotal Cost of Direct Materials PurchasesDirect Materials Per UnitDirect Labor Time Per UnitDirect Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor Hours		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 Beginning Direct Materials (Pounds)Cost Per PoundDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionDirect Labor Cost Per HourTotal Cost of Direct Materials PurchasesDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Direct Labor CostTotal Materials RequiredTotal Required Direct Labor HoursUnits to be Produced		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing materials purchases budget item     Total Cost of Direct Materials Purchases    Units to be Produced    Beginning Direct Materials (Pounds)    Cost Per Pound    Direct Labor Time Per Unit    Total Pounds Needed for Production    Total Required Direct Labor Hours    Total Direct Labor Cost    Total Materials Required    Desired Ending Direct Materials (Pounds)    Direct Labor Cost Per Hour    Direct Materials Purchases    Direct Materials Per Unit		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

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Answer 1

DEWITT Industries Direct Material Budget For the Quarter Ending March 31,2020 anuary February March Units to be purchases 10470 8470 5440 Units Direct Materila Per Unit 4 lbs Total Pound Needed 41880 33880 21760 lbs ADD:desired ending inventory (20% 6776 4 352 3472 lbs Total Material Required 48656 38232 25232 lbs Less: Beginning Direct Material 8376 6776 4352 lbs Direct Material Purchases 40280 31456 20880 lbs Cost per Pound 4 4 Per lbs Total budgeted direct Material Cost 161120125824 83520