cupcake3103670
31.07.2020 •
Business
DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,120 March 5,480 February 8,460 April 4,370 Each unit requires 5 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 10,120 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.
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