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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I took a picture of what i have so far, I am having trouble with the direct material budget. 

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.
Transcribed Image Text: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.
Sales Budget
Unit Sales
Unit Price
Sales Revenue
Cash Sale
Credit Sale
Total
Production Budget
0.12
Total
Direct Material Budget
Total
Direct Labor Budget
$
$
0.10 $
0.90
1.15 $
580
1.15 $
667.00 $
66.70 $
600.30
667.00 $
July
83
667.00
750
July
July
July
600
1.15 $
690.00 $
69.00 $
621.00
690.00 $
August
90
690.00
780
August
August
August
650
1.15 $
747.50 $
74.75 $
672.75
747.50 $
September
117
747.50
865
September
September
September
850
1.15
977.50
97.75 $
879.75
977.50 $
October
138
977.50
1,116
October
October
$
$
October
1,000
1.15
1,150.00
115.00
1,035.00
1,150.00
November
1,150.00
1,150
November
November
0
November
0
O
Transcribed Image Text:Sales Budget Unit Sales Unit Price Sales Revenue Cash Sale Credit Sale Total Production Budget 0.12 Total Direct Material Budget Total Direct Labor Budget $ $ 0.10 $ 0.90 1.15 $ 580 1.15 $ 667.00 $ 66.70 $ 600.30 667.00 $ July 83 667.00 750 July July July 600 1.15 $ 690.00 $ 69.00 $ 621.00 690.00 $ August 90 690.00 780 August August August 650 1.15 $ 747.50 $ 74.75 $ 672.75 747.50 $ September 117 747.50 865 September September September 850 1.15 977.50 97.75 $ 879.75 977.50 $ October 138 977.50 1,116 October October $ $ October 1,000 1.15 1,150.00 115.00 1,035.00 1,150.00 November 1,150.00 1,150 November November 0 November 0 O
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