Excel Problem 3 - Directions Guidance Corp is preparing its Master Budget for 20XX. You need to prepare Guidance's Direct Materials Budget and Schedule of Cash Disbursements for Materials Purchases on the excel template provided. Six of the points (3 for each budget/schedule) are for the correct accounting and the remaining four are for the spreadsheet correctly recalculating when the grader changes the given information in Column H of the spreadsheet. < The given information is already input into the spreadsheet. < REQUIRED 1. PREPARE A DIRECT MATERIALS BUDGET (3 POINTS) < Prepare the Direct Materials Budget for the first three months of Guidance's fiscal year (January, February, and March), along with the full quarter, using the template in the Excel spreadsheet. < < Relevant information < Required Production January 150,000 units February 180,000 units March = 100,000 units April 120,000 units Pounds of materials needed per unit = 4 pounds Beginning raw materials inventory on January 1, 20XX = 40,000 pounds. < 2. Percentage of the following month's production used to determine desired ending inventory = 20%+ Raw materials cost per pound = $5.00 per pound < PREPARE A SCHEDULE OF CASH PAYMENTS FOR RAW MATERIALS (3 POINTS) < Prepare the Schedule of Cash Payments for the first three months of Guidance's fiscal year (January, February, and March) and for the quarter, using the template in the Excel spreadsheet. HINT: cost of raw materials that Guidance is paying for comes from the last line of your direct materials budget. Guidance's payment schedule: < 25% of purchases are paid for in the month of purchase < 60% are paid for in the month after purchase 15% are paid for in the second month after purchase < Beginning accounts payable = $600,000. Assume 70% of the accounts payable will be paid in January and 30% in February. < Check Figures Because this problem has a number of areas that frequently pose problems for students, check figures are provided to give you feedback as to whether your budget/schedule has errors. Cost of Raw Materials to be Purchased Total Cash Disbursements for Materials January $3,520,000 $1,300,000 February $3,280,000 $3,112,000 $3,016,000 March $2,080,000 Quarter $8,880,000 $7,428,000