Help, I'm so confused, is the direct material the same as the raw material or are they two different things?

V & T Faces, Inc. manufactures to types of makeup foundation.Type S is for sensitive skin and type N is for non-sensitive skin.The products have the following materials and labor requirements:

Type N

Type S

Direct materials required per 100 bottles

Liquid medium

30 pounds

70 pounds

Pigment A

20 pounds

30 pounds

Direct labor required per 100 bottles ($12/hour)

.25 hour

.50 hour

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on the production volume of 495,000 bottles. Production overhead is applied on the basis of direct-labor hours.

Indirect material

$10,500

Indirect labor

49,000

Utilities

25,000

Property taxes

16,000

Insurance

18,000

Depreciation

30,000

Total

$148,500

The following selling and administrative expenses are anticipated for the next year:

Salaries and fringe benefits of sales personnel

$80,000

Advertising

15,000

Management salaries and fringe benefits

85,000

Clerical wages and fringe benefits

25,000

Miscellaneous administrative expenses

5,000

Total

$210,000

The sales forecast is as follows:

Sales Volume

Sales Price

Type N

500,000 bottles

$90 per hundred bottles

Type S

500,000 bottles

$130 per hundred bottles

The following inventory information is available.The unit production costs for each product are expected to be the same this year and the following year.

Expected Inventory January 1

Desired Ending Inventory December 31

Finished Goods

Type N

10,000 bottles

5,000 bottles

Type S

20,000 bottles

15,000 bottles

Raw Material

Pigment A

15,000 pounds

5,000 pounds

Liquid medium

5,000 pounds

10,000 pounds

Required:

Prepare a master budget for V & T Faces, Inc., for the next year.Assume an income tax rate of 40 percent. Include the following:

1.Sales budget

2.Production budget

3.Direct-material budget

4.Direct-labor budget

5.Production-overhead budget

6.Selling and administrative expense budget

7.Budgeted income statement