Make a direct materials budget

April 604

May 775

June 1,045

Quarter 2,354

July 1,290

August 825

1.The sofas require two direct materials: oak wood frames and pre-made cushions: Sixteen (16) feet of 4x1 oak wood are required for each sofa produced. Management desires to have materials on hand at the end of each month equal to 18 percent of the following month's sofa production needs. The beginning inventory of wood, April 2020, is expected to be 2,340 feet of wood. Oak wood is expected to cost $8.00 per foot. (Note: budgeted production in July is required in order to complete the direct materials budget for June. Use the @ROUNDUP function to round up to the whole number the number of feet of oak wood to purchase).

Pre-made cushions (30*30 inches) are purchased by a set of 10 cushions. Six (6) cushions are required for each sofa. Management desires to have cushions on hand at the end of each month equal to 13 percent of the following month's production needs.The beginning inventory, April 2020, is expected to be 630 cushions. The set of 10 cushions is expected to cost $200. (Note: budgeted production in July is required in order to complete the direct materials budget for June. Use the @ROUNDUP function to round up to nearest 10 the number of cushions to purchase).

make a direct materials budget. Also, because two direct materials are required for production - oak wood and cushions - you will need a separate schedule for each direct material.