Delray Manufacturing needs to better budget and analyze costs. While Delray has experienced high sales growth, it has struggled to effectively manage costs and inventories. Delray aims to end each month with direct materials inventory equal to 40% of next months production needs. Each finished unit requires 4 pounds of direct materials and 2 hours of direct labor. Delray budgets $12,000 of fixed overhead costs per month. A Tableau Dashboard is provided to aid our analysis.

Budgeted Production -

April 880

May 1100

June 1075

July 1125

Sales forecast

April 805

May 900

June 1025

July 875

March 1408

DL - 18

DM - 3

VOR - 25

Sales Forecast & Production Budget (in Units) 1,500- Budgeted Production Sales Forecast 1,200+ Budgeted Production 900+ Sales Forecast 600- April May June July Ending Direct Materials Inventory by Month March April Solve for this value May Solve for this value June Solve for this value 400 800 1600 2000 1200 Direct Materials (Pounds) Direct labor rate Direct materials cost Variable overhead rate 1. Calculate materials needed (in pounds) for production in each month of April, May, and June. 2. Prepare a direct materials budget for the month of April. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate materials needed in pounds) for production in each month of April, May, and June. DELRAY MANUFACTURING Direct Materials Needed For April, May, and June April 880 May 1 June 1,075 units ,100 Budget production (units) Materials requirements per unit Materials needed for production (lbs.) Required 1 Required 2 > Required 1 Required 2 Prepare a direct materials budget for the month of April. 880 units DELRAY MANUFACTURING Direct Materials Budget For April Budget production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases