Crane Industries has adopted the following production budget for the first 4 months of 2027. Month January February Units Month Units 10,600 March 5,300 8,480 April 4,240 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2026, the ending raw materials inventory was 4,240 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crane Industries has adopted the following production budget for the first 4 months of 2027.
Month
Units
January 10,600
Month
Units
March
5,300
February 8,480 April
4,240
Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2026, the ending raw materials inventory
was 4,240 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.
>
>
>
>
>
CRANE INDUSTRIES
Direct Materials Purchases Budget
January
$
February
$
$
Transcribed Image Text:Crane Industries has adopted the following production budget for the first 4 months of 2027. Month Units January 10,600 Month Units March 5,300 February 8,480 April 4,240 Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2026, the ending raw materials inventory was 4,240 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. > > > > > CRANE INDUSTRIES Direct Materials Purchases Budget January $ February $ $
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