Big Boss Limited was formed two years a po by Jochua Sealen. He had the idea lo makea product for Quick Service Restaurants that woald be easy and convenient to prepure. He hoople several used plant and eqaipmeat from a company that aas imvolved in makiog a kimilar prodeet bet was leaving the indusiry. Big Bows estimated that the equipenent woedd be able to lat for 10 . yeans once it was properly maintainat. He called hias finished prodact Sween". The budget for the neat forur monthr ending 31 July 2023 is fo be proparad. The following dita Was gathered: AAliminini kind.

|C| Raw materials Actual costs per pound of opening raw material inventories are as budgeted for the coming period. [D] The company maintains a policy of holding ( 5 % ) of the next month's demand for "Sweet" in inventory. The policy for raw materials is to maintain ( 5 % ) of next month's requirements in inventory. [E] Collection from customers is expected to be as follows: - ( 90 % ) in the month in which the sales are made - ( 10 % ) in the first month after the sale [F] ( 80 % ) of all raw materials purchased are expected to be paid for in the month of purchase with the remaining amount being paid in the following month. [G]Selling and Administrative expenses are expected to be: - Variable ( -2 % ) of sales revenue - Fixed ( $ 100,000 ) per month including ( $ 4,000 ) for depreciation. [H|Tax payable represents ( 25 % ) of profit before tax and is paid on March 15 cach year for profit made in the prior year. Profit before tax for the year ended December 31, 2022 was ( $ 600,000 ).

Direct Labour Budget The direct labor budget is a budget of planned expenditures for direct labour. The budget indicates the rate per hour and the number of hours necessary to meet prod

How did you get ending inventory?

Requirement : Direct materials budget Explanation Please refer to solution in this step