Use the data provided to create the Direct Materials Budget. Use the format provided for the direct Materials budget. Please also provide Formulas.

Thermium, inc, is preporing its budget for the coming year, 2023, The first step is to plan for the first quarter of that coming vear, The compony has gathered information from its managers in preparation of the budgeting process. Thermium likes to keep 10% of the next month's unit sales in ending irwentory. All sales are on account. 80% of the Accounts Recelvable are collected in the month of sale, and 20% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31,2022 , totaled $180,000 Thermium likes to heep B\% of the materials needed for the next month in its ending inventory. Raw Materials on December 31.2022, totaled 34,050 pounds. Payment for materials is paid 75% in the month of parchase, and 25% is pald in the month after puirchase. Accounts Payable on December 31, 2022, totaled $25,000. Thermium thes to keep bx of the materials needed for the next month in is ending imventory. Raw Materialt on December 31, 2022, totaled 34,050 pounds. Payment for materials is paid 75% in the month of purchase, and 25% is paid in the month after purchase. Accounts Payable on Decernter 31,2002 , totaled $25,000. other information The Cash balance on December 31,2022, totaled $100,000, but the Bark requires Thermium to maintain an end of month cash balance of at least $700,000 beginning on January 31,2023. Dividends are paid each month at the rate of $3,00 per share for 5,000 shares outsanding. The company has an open line of credit with Calypas Bank. The terms of the agreement requires borrowing to be in 51,000 increments at 124 interest. Thermium borrows on the first day of the borrowing month and repays on the las: day of the repayment month. 3. For the first quarter of 2023, pregare a direct materials bodiget. Instruction: Aased on your production budget, Thermium will be able to determine the omount of direct materibls that they will need to purchose eoch month in order to support the Production sudpet above, Since you know the amount of Units to be produced from Schedule a 2 and the amount of Oirect Materlal in Pounds per unit of production you are able to determine the amount needed for production. You also know that you need inventiny of Oirect Materials ot the end of each month of a $ of the next month's production. Once your subtract the bepinning inventory you are oble to determine the amount of Direct Materials to purchase each month. Check Figure - Total Cost of Direct Materials Purchases =$503,445 Thermium, inc, is preporing its budget for the coming year, 2023, The first step is to plan for the first quarter of that coming vear, The compony has gathered information from its managers in preparation of the budgeting process. Thermium likes to keep 10% of the next month's unit sales in ending irwentory. All sales are on account. 80% of the Accounts Recelvable are collected in the month of sale, and 20% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31,2022 , totaled $180,000 Thermium likes to heep B\% of the materials needed for the next month in its ending inventory. Raw Materials on December 31.2022, totaled 34,050 pounds. Payment for materials is paid 75% in the month of parchase, and 25% is pald in the month after puirchase. Accounts Payable on December 31, 2022, totaled $25,000. Thermium thes to keep bx of the materials needed for the next month in is ending imventory. Raw Materialt on December 31, 2022, totaled 34,050 pounds. Payment for materials is paid 75% in the month of purchase, and 25% is paid in the month after purchase. Accounts Payable on Decernter 31,2002 , totaled $25,000. other information The Cash balance on December 31,2022, totaled $100,000, but the Bark requires Thermium to maintain an end of month cash balance of at least $700,000 beginning on January 31,2023. Dividends are paid each month at the rate of $3,00 per share for 5,000 shares outsanding. The company has an open line of credit with Calypas Bank. The terms of the agreement requires borrowing to be in 51,000 increments at 124 interest. Thermium borrows on the first day of the borrowing month and repays on the las: day of the repayment month. 3. For the first quarter of 2023, pregare a direct materials bodiget. Instruction: Aased on your production budget, Thermium will be able to determine the omount of direct materibls that they will need to purchose eoch month in order to support the Production sudpet above, Since you know the amount of Units to be produced from Schedule a 2 and the amount of Oirect Materlal in Pounds per unit of production you are able to determine the amount needed for production. You also know that you need inventiny of Oirect Materials ot the end of each month of a $ of the next month's production. Once your subtract the bepinning inventory you are oble to determine the amount of Direct Materials to purchase each month. Check Figure - Total Cost of Direct Materials Purchases =$503,445