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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
Need help finding the Direct Materials budget. I included a photo of what i have so far.
Transcribed Image Text:Sales Budget
Unit Sales
0.1 Multiply; Sales price
0.9 Total Sales Rev
Type of Sale
Cash Sales 0.10
Credit Sales 0.90
roduction Budget
Unit Sales (cases)
0.12 Plus: Desired Ending inventory
Total needed
Less: Beginning inventory
# of units to produce
Direct Materal budget
Units to be produced (from production budget)
Multiply by:Quanity of DM needed per unit
Quantity needed for production
Plus: Desired ending inventory of DM
Total quantity needed
Less: Beginning inventory of DM
Quantity to purchase
Multiply by: Cost per pound
Total cost of DM ourchases
JULY
667.00
$735
490,245.00
49,024.50
441,220.50
490,245.00
JULY
$
JULY
55
AUGUST SEPTEMBER OCTOBER NOVEMBER
667 $
83
750
695
690.00
$735
507,150.00
50,715.00
456,435.00
507,150.00
AUGUST
690 $
90
780
83
697
AUGUST
747.50
$735
549,412.50 718,462.50
54,941.25
71,846.25
494,471.25 646,616.25
549,412.50 718,462.50
SEPTEMBER OCTOBER
977.50
$735
748 $
117
865
90
775
978 $
138
1,116
117
998
SEPTEMBER OCTOBER
1,150.00
$735
845,250.00
84,525.00
760,725.00
845,250.00
NOVEMBER
1,150
1,150
138
1,012
NOVEMBER
Transcribed Image Text:. 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.
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