Sales Forecast & Product Budget table numbers (units)

April: Budget (880 units) & Sales (805 units)

may: Budget (1,100 units) & Sales (900 units)

june: Budget (1075) & Sales (1025 units)

july : budget (1125 units) & sales (875 units)2. Prepare a direct materials budget for the month of April.

DELRAY MANUFACTURING
Direct Materials Budget
For April
Budget production (units)	880	units
Materials requirements per unit	4	lbs.
Materials needed for production (lbs.)	3,520	lbs.
Budgeted ending inventory (lbs.)
Total materials requirements (lbs.)
Beginning inventory (lbs.)		0
Materials to be purchased (lbs.)	0
Materials price per pound	$3.00
Budgeted cost of direct materials purchases	$0

Delray Manufacturing needs to better budget and analyze costs. While Delray has experienced high sales growth, it has struggled to effectively manage costs and inventories. Delray aims to end each month with direct materials inventory equal to 40% of next month's production needs. Each finished unit requires 4 pounds of direct materials and 2 hours of direct labor. Delray budgets $12,000 of fixed overhead costs per month. A Tableau Dashboard is provided to aid our aalysis. Sales Forecast & Production Budget (in Units) 1,500 Budgeted Production Sales Forecast 1,200 Budgeted Production 900 Sales Forecast 600 300 July June May April Ending Direct Materials Inventory by Month March 1408 lb April Solve for this value May Solve for this value June Solve for this value 2000 1600 1200 400 800 Direct Materials (Pounds) Variable overhead rate Direct labor rate Direct materials cost 425 per dircet labor 16. 201 $3 per peurel $18 per nour VOLUME 1