Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards of material, which costs $3.00 per yard. The company's policy is to have enough material on hand to equal 15% of next month's production needs and to maintain a finished goods inventory equal to 20% of the next month's production needs.**PLEASE NOTE:** Units are rounded to whole numbers with commas as needed (i.e., 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e., $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e., $1,234.56).### Table ExplanationThe table below represents various elements of the production and inventory planning process:| Cost per Yard | Desired Ending Inventory | DM per Unit ||---------------------|-------------------------------|----------------------------|| Units to be Produced| Yards Needed for Production | Required DM Yards || Beginning Inventory | Total Cost of DM Purchase | Total DM Required |- **Cost per Yard**: The monetary cost of one yard of material.- **Desired Ending Inventory**: The amount of inventory desired at the end of the period.- **DM per Unit**: Direct material required per unit.- **Units to be Produced**: The number of units the company plans to produce.- **Yards Needed for Production**: The total yards of material needed to meet production requirements.- **Required DM Yards**: The required direct material yards to fulfill production needs.- **Beginning Inventory**: The inventory available at the beginning of the period.- **Total Cost of DM Purchase**: The total cost associated with purchasing direct materials.- **Total DM Required**: The total direct materials required for production including any desired ending inventory.This detailed breakdown helps in ensuring efficient production and inventory management for Cloud Shoes. ---### Cloud Shoes#### Direct Materials Budget**For the Month of March 2019**| Terms | March ||-------|-------|| | || | || | || | || | || | || | || | || | || | |---**Explanation:**This table is a template for a Direct Materials Budget for Cloud Shoes for the month of March 2019. - **Table Structure:** - The table is organized into two main columns: "Terms" and "March". - The "Terms" column is meant to list various budget categories related to direct materials. - The "March" column is intended to record the corresponding budget amounts for these categories for March 2019.- **Rows:** - The table contains multiple blank rows for entering specific terms and their respective budgeted amounts. This provides a flexible format for detailing each element of the direct materials budget.**Purpose:**This type of budget is used by companies to forecast the amount and cost of materials required to meet production needs for a specific period, in this case, the month of March 2019. It aids in planning and controlling the financial aspect of material procurement, ensuring that operations have sufficient materials to continue production processes without interruption.

Introduction: Direct material budget is a useful tool in analyzing and fulfilling production…

Answered: Cloud Shoes Direct Materials Budget For…

Business

Accounting

Cloud Shoes Direct Materials Budget For the Month of March 2019 Terms March

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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