Each unit requires 3 pounds of raw materials costing 2 per

Reference no: EM13605375

Moreno Industries has adopted the following production budget for the first 4 months of 2011.

Month		Units	Month		Units
	January	10,000		March	5,000
	February	8,000		April	4,000

Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.Complete the direct materials purchases budget by month for the first quarter.

Reference no: EM13605375

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