Culver Industries has adopted the following production budge

Culver Industries has adopted the following production budget for the first 4 months of 2017 Month Units Month Units 10,280 March 8,430 April 5,170 4,420 January als r ventory at the endof the month ecua to 209 of Each unit requires 4 pounds o raw mate next month\'s production requirements. a s costing?4 per pound on December 31, 2016, the ending ra s mater als mentory was 9,400 pounds. Management wants to ave a ra mate Prepare a direct materials purchases budget by month for the first quarter. CULVERINDUSTRIE Direct Materials Purchases Budget January February March Question Attempts: of 5 used

Solution

Direct material purchase budget :

	January	February	March
Production units	10280	8430	5170
Raw material per unit	4	4	4
Raw material needed for production	41120	33720	20680
Add: Desired ending inventory	6744	4136	3536
Total requirement	34376	37856	24216
Less: Beginning inventory	-9400	-6744	-4136
Direct material purchase (qty)	24976	31112	20080
Cost per pound	4	4	4
Direct material purchase cost	99904	124448	80320