• Raw Materials Purchases Budget
  	2020
  	July	August	September	TOTAL	October
  Units Produced
  Yards of RM Required Per Unit of FG
  Total Yards Used in Production
  Plus: Desired Yards in Ending Inventory
  Total Yards Required
  Less: Yards in Beginning Inventory
  RAW MATERIALS PURCHASES (YARDS)
  Cost per Yard
  RAW MATERIALS PURCHASES (COST)

• Please fill the raw material budget
• Each mask is referred to as a finished good unit. Although the company makes both adult and childrens sizes, each mask will be treated the same.
• Budgeted sales in units are as follows:
  • July 222,000 masks
  • August 290,000 masks
  • September 216,000 masks
  • October 165,000 masks
  • November 197,000 masks
• Each unit sells for $7.75.
• The company sells their masks to merchandisers. All sales are on account. The companys collection pattern is:
  • 70 % of sales are collected in the month of sale
  • 30 % are collected in the month following the sale

• The company desires to have finished goods inventory (masks) on hand at the end of each month equal to 20% of the following months budgeted sales in units. On June 30, 2020, the company had 44,400 masks on hand.
• .2 yards of fabric are required for each mask produced. The company desires to have materials on hand at the end of each month equal to 30% of the following months production needs. On June 30, 2020, the company had 14,136 yards of fabric on hand.
• The fabric used in production costs $14.00 per yard. The companys payment pattern is:
  • 60% of the months purchases are paid for in the month of purchase
  • 30% are paid for in the month following the purchase
• Each mask requires 3 minutes (0.2 hours) of labor time to make and the hourly employees are paid $18/hour. Wages are paid in the month incurred.

Variable manufacturing overhead is $0.75 per mask

Please show in excel your calculations