Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to D

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Read the requirements.

Requirement $3.$ Prepare a direct materials budget. $($Round your answers to the nearest whole dollar.$)$

Dalton Manufacturing

Direct Materials Budget

For the Quarter Ended March $31$

Units to be produced

Multiply by: Quantity $($pounds$)$ of DM needed per unit

Quantity $($pounds$)$ needed for production

Plus: Desired ending inventory of DM

Total quantity $($pounds$)$ needed

Less: Beginning inventory of DM

Quantity $($pounds$)$ to purchase

Multiply by: Cost per pound

Total cost of DM purchases

a$.$ Actual sales in December were $$76,000.$ Selling price per unit is projected to remain stable at $$9$ per unit throughout

the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:

$[$ January dotsdotsdots,$80,100],[$ February dotsdotsdots,$89,100],[$ March dotsdotsdots,$82,800],[$ April $...........$ $$9,85,500],[$ May.......... $,77,400]$

b$.$ Sales are $30\%$ cash and $70\%$ credit. All credit sales are collected in the month following the sale.

c$.$ Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be $10\%$

of the following month's sales $($in units$).$

d$.$ Of each month's direct material purchases, $20\%$ are paid for in the month of purchase, while the remainder is paid

for in the month following purchase. Two pounds of direct material is needed per unit at $$1\mathrm{.}50$ per pound. Ending

inventory of direct materials should be $20\%$ of next month's production needs.

e$.$Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor

hours per unit is $0\mathrm{.}03.$ The direct labor rate per hour is $$13$ per hour. All direct labor is paid for in the month in which

the work is performed. The direct labor total cost for each of the upcoming three months is as follows:

f$.$ Monthly manufacturing overhead costs are $$6,500$ for factory rent, $$2,900$ for other fixed manufacturing expenses,

and $$1\mathrm{.}40$ per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses

are paid in the month in which they are incurred.

g$.$Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton

Manufacturing will purchase equipment for $$5,800($cash$),$ while February's cash expenditure will be $$11,600$

and March's cash expenditure will be $$15,800.$

h$.$ Operating expenses are budgeted to be $$1\mathrm{.}20$ per unit sold plus fixed operating expenses of $$1,400$ per month. All

operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures.

i$.$ Depreciation on the building and equipment for the general and administrative offices is budgeted to be $$4,900$ for