I need help making sure my Direct material budget is correct, i attached what i have for it. If anything is wrong please explain with excel so i know how you got the new awnser. **Direct Materials Requirements for Jacket Production****Silk**- Silk fabric is purchased by the yard. Each jacket requires 1.75 yards of silk fabric.- Management aims to have enough materials on hand at the end of each month to cover 15% of the following month's jacket production needs.- Use the `@ROUND` function to round to the nearest whole number for the amount of silk needed in ending inventory.- Starting inventory in July 2023 is 220 yards.- Silk fabric costs $25.00 per yard.- The `@ROUND` function should also be used to determine how many yards of silk to purchase (DM to purchase) by rounding to the nearest whole number.- **Note:** Budgeted production in October is required to complete the direct materials budget for September.**Viscose for Lining**- Viscose fabric is bought in rolls of 10 yards. Each jacket requires 2.2 yards of viscose fabric.- Management desires enough viscose fabric at the end of each month to equal 11% of the next month's production needs.- Use the `@ROUND` function to determine the number of viscose yards needed in ending inventory, rounding to the nearest whole number.- Starting inventory in July 2023 is 187 yards.- Each roll (10 yards) costs $110.- The `@ROUND` function is also used for rounding the number of viscose yards to purchase (DM to purchase).- **Note:** Budgeted production in October is needed to complete the direct materials budget for September.**Prepare a Direct Materials Budget**- Given two direct materials are essential for production—silk and viscose fabric—you will need a separate schedule for each direct material. **Production and Direct Material Budgets**### Production BudgetThis section outlines the monthly production requirements from July to November based on unit sales forecasts:- **Unit Sales:** Ranges from 667 in July to 1,150 in November.- **Desired Ending Inventory:** Gradually increases to 138 in October, then drops to 0 in November.- **Total Needed:** This is the sum of unit sales and desired ending inventory, ranging from 750 to 1,150.- **Less: Beginning Inventory:** The inventory at the beginning of each month, reducing the number of units that need to be produced.- **# of Units to Produce:** Calculated by subtracting beginning inventory from the total needed, ranging from 695 to 1,012.### Direct Material Budget - SilkThis section calculates the material requirements for silk:- **Quantity of DM Needed per Unit:** Constant at 1.75.- **Quality Needed for Production:** Calculated by multiplying units to be produced by the quantity of DM needed per unit.- **Total Quality Needed:** Includes desired ending inventory to ensure adequate stock for the next period.- **Quality to Purchase:** Total quality needed minus beginning inventory.- **Cost per Pound:** Fixed at $25.00.- **Total Cost of DM Purchases:** Resulting total from multiplying quality to purchase by cost per pound, ranging from $29,473 to $43,771.### Direct Material Budget - Viscose FabricThis section outlines the material requirements for viscose fabric:- **Quantity of DM Needed per Unit:** Constant at 2.2.- **Quality Needed for Production:** Similar calculation as silk, considering the different material requirement.- **Total Quality Needed:** Ensures enough inventory for subsequent production cycles.- **Quality to Purchase:** Adjusted based on beginning inventory.- **Cost per Pound:** Fixed at $11.00.- **Total Cost of DM Purchases:** Costs are calculated similarly to silk, ranging from $16,616.16 to $24,189.44.The data is structured in a tabular format, indicating the meticulous planning involved in production and material acquisition to meet sales demands efficiently.

The company's spending plan, or budget, is determined by its revenue and costs.It makes projections…

3. The jackets require two direct materials: silk fabric and viscose fabric for lining. Silk Silk fabric is purchased by the yard. 1.75 yards of silk fabric are required for each jacket produced. Management desires to have materials on hand at the end of each month equal to 15 percent of the following month's jacket production needs. Use the @ROUND function to round to the nearest whole number the number of yards 1 of silk desired in ending inventory. The beginning inventory of silk fabric, July 2023, is expected to be 220 yards. Silk fabric is expected to cost $25.00 per yard. Use the @ROUND function to round to the nearest whole number the number of yards of silk to purchase (DM to purchase). (NOTE: budgeted production in October is required in order to complete the direct materials budget for September.) Viscose for lining Viscose fabric is purchased by the roll of 10 yards. 2.2 yards of viscose fabric are required for each jacket produced. Management desires to have viscose fabric on hand at the end of each month equal to 11 percent of the following month's production needs. Use the @ROUND function to round to the nearest whole number the number of viscose yards desired in ending inventory. The beginning inventory, July 2023, is expected to be 187 yards. The roll of 10 yards is expected to cost $110. Use the @ROUND function to round to the nearest whole number the number of viscose fabric yards to purchase (DM to purchase). (NOTE: budgeted production in October is required to complete the direct materials budget for September.) Prepare a Direct Materials budget. Also, because two direct materials are required for production - silk and viscose fabric - you will need a separate schedule for each direct material.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q