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.SilkSilk fabric is purchased by the yard. 1.75 yards of silk fabric are required for eachjacket produced. Management desires to have materials on hand at the end of eachmonth 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 yards1of silk desired in ending inventory. The beginning inventory of silk fabric, July2023, is expected to be 220 yards. Silk fabric is expected to cost $25.00 per yard. Usethe @ROUND function to round to the nearest whole number the number ofyards of silk to purchase (DM to purchase). (NOTE: budgeted production inOctober is required in order to complete the direct materials budget for September.)Viscose for liningViscose fabric is purchased by the roll of 10 yards. 2.2 yards of viscose fabric arerequired for each jacket produced. Management desires to have viscose fabric onhand at the end of each month equal to 11 percent of the following month'sproduction needs. Use the @ROUND function to round to the nearest wholenumber the number of viscose yards desired in ending inventory. The beginninginventory, July 2023, is expected to be 187 yards. The roll of 10 yards is expected tocost $110. Use the @ROUND function to round to the nearest whole number thenumber of viscose fabric yards to purchase (DM to purchase). (NOTE: budgetedproduction in October is required to complete the direct materials budget forSeptember.)Prepare a Direct Materials budget. Also, because two direct materials are requiredfor production - silk and viscose fabric - you will need a separate schedule foreach direct material. Sales BudgetUnit SalesUnit PriceSales RevenueCash SaleCredit SaleTotalProduction Budget0.12TotalDirect Material BudgetTotalDirect Labor Budget$$0.10 $0.901.15 $5801.15 $667.00 $66.70 $600.30667.00 $July83667.00750JulyJulyJuly6001.15 $690.00 $69.00 $621.00690.00 $August90690.00780AugustAugustAugust6501.15 $747.50 $74.75 $672.75747.50 $September117747.50865SeptemberSeptemberSeptember8501.15977.5097.75 $879.75977.50 $October138977.501,116OctoberOctober$$October1,0001.151,150.00115.001,035.001,150.00November1,150.001,150NovemberNovember0November0O

A direct materials budget is one of the budget which a company prepares so that the materials which are required can be purchased for each month or for a period as per basis of the requirements set by the company.Production Budget for Silk FabricJulyAugustSeptemberOctoberNovemberBeginning Inventory220157.5170.625223.125262.5Yards as per Sales101510501137.51487.51750Ending Inventory157.5170.625223.125262.50Total Yards Required9531063119015271488Rate Per Yard $ 25 $ 25 $ 25 $ 25 $ 25Total Cost for Silk Fabric $ 23,825 $ 26,575 $ 29,750 $ 38,175 $ 37,200Production Budget for Viscose FabricJulyAugustSeptemberOctoberNovemberBeginning Inventory187145.2157.3205.7242Yards as per Sales12761320143018702200Ending Inventory145.2157.3205.72420Total Yards Required12341332147819061958Roll is Purchased in 10 Yards1010101010Number of Rolls Required124134148191196Rate per roll $ 110 $ 110 $ 110 $ 110 $ 110Total Cost for Viscose Fabric $ 13,640 $ 14,740 $ 16,280 $ 21,010 $ 21,560Production BudgetJulyAugustSeptemberCost of Raw Materials $ 37,465 $ 41,315 $ 46,030

Answered: Prepare a Direct Materials budget.…

Business

Accounting

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

Problem 1Q

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

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.

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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