How do I prepare the direct materials budget?

x P6-40 (similar to) Question Help Pet Gear Company makes two pet carriers, the Cat-allac and the Dog-eriffic. They are both made of plastic with metal doors, but the Cat-allac is smaller. Pet Gear uses an activity-based costing system and classifies overhead into three activity pools: Setup, Processing, and Inspection. Activity rates for these Information for the two products for the month of April is given in the following tables: activities are $105 per setup-hour, $10 per machine-hour, and $15 per inspection-hour, respectively. Other information follows (Click the icon to view the information for the two products.) Pet Gear accounts for direct materials using a FIFO cost-flow assumption. i Account Information - X (Click the icon to view the account information.) Cost Budget Available from beginning direct materials inventory Sales and Inventory Information, Finished Goods Product Information - X (under a FIFO cost-flow assumption) Cat-allac Dog-eriffic Plastic $ 999 Expected sales in units 530 265 Metal $ 256 Selling price 205 $ 310 Input Prices To be purchased this period Target ending inventory in units 30 10 Direct materials Plastic 17,150 Beginning inventory in units 25 Plastic 5 per pound Metal 1.780 Beginning inventory in dollars $ 1,000 $ 4,650 Metal $ 4 per pound Direct materials to be used this period $ 18,149 $ 2,036 20,185 Pet Gear uses a FIFO cost-flow assumption for finished-goods inventory. Direct manufacturing labor $ 10 per direct manufacturing labor hour Now prepare the direct material purchases budget. Input Quantities per Unit of Output i Other information - X Cat-allac Dog-eriffic Direct Materials Purchases Budget Direct materials For the Month of April Plastic 4 pounds 6 pounds Materials Cost Driver Information Metal 0.5 pounds 1 pound Plastic Metal Total Cat-allac Dog-errific Direct manufacturing labor-hours (DMLH) 3 hours 5 hours Physical Units Budget Number of units per batch 25 10 Machine-hours (MH) 11 MH 19 MH To be used in production lbs . Ibs . Setup time per batch 1.50 hours 2.00 hours 360 lbs. 75 lbs . Inventory Information, Direct Materials Add target ending inventory Inspection time per batch 0.5 hours 0.8 hour Plastic Metal Total requirement Ibs . Ibs . If necessary, round up to calculate number of batches Nonmanufacturing fixed costs for March equal $30,000, half of which are salaries. Beginning inventory 270 pounds 30 pounds Deduct beginning inventory 270 lbs. 80 lbs. Salaries are expected to increase 5% in April. Other nonmanufacturing fixed costs Target ending inventory 360 pounds 75 pounds Purchases to be made lbs Ibs will remain the same. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. Cost of beginning inventory $ 999 256 Cost Budget Purchases Print Done Print Done Enter any number in the edit fields and then click Check