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I need help with requirement 3... in preparing a direct materials budget.

The first photo is the main question... which is to prepare a direct materials budget. The second photo is the whole problem completed so far. The third photo is additional information while the last photo is simply data. please help, it is quite difficult for me to solve

P9-57A (similar to) Question Help Devon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data portain to Devon Manufacturing's operations (Click the icon to view the data.) (Click the Kon to view additional data) Read the requirements Production Budget For the Quarter Ended March 31 Month January 8,900 990 February 9,900 920 March 9,200 950 Unit sales Plus: Desired ending inventory Total needed Less Beginning inventory Quarter 28,000 950 28,950 890 28.060 9,890 10.820 10,150 920 Units to produce 9.000 9.230 Requirement 3. Prepare a direct materials budget (Round your answers to the nearest whole dollar) March Quarter Devon Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month January February Units to be produced Multiply by Quantity (pounds) of DM needed per unit Quantity (pounds) needed for production Plus: Desired ending inventory of UM Total quantity (pounds) noded Less Beginning inventory of DM Quantity (pounds) to purchase Multiply by Cost per pound Total cost of DM purchases Enter any number in the edit fields and then click o n * Requirements X les collections ment 2. Prep 1. Prepare a schedule of cash collections for January, February, and March, and for the later in total 2. Prepare a production budget. (Hint Unit sales - Sales in dollars / Selling price per unit) 3. Prepare a direct materials budget. 4. Prepare a cash payments budget for the direct material purchases from Requirement 3 (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) 5. Prepare a cash payments budget for direct labor 6. Prepare a cash payments budget for manufacturing overhead costs 7. Prepare a cash payments budget for operating expenses 8. Prepare a combined cash budget Calculate the budgeted manufacturing cost per unit (assume that foxed manufacturing overhead is budgeted to be $0.90 per unit for the year) 10. Prepare a budgeted income statement for the quarter ending March 31. (Hint Cost of goods sold Budgeted cost of manufacturing one unit x Number of units sold) peng. Sau 0 V HOLD Or upcomiy yuar vuur as now im January ........$ 80,100 February ........$ 89,100 March $ 82 800 April $ 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. Devon 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 $1.50 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 0.03. 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: January.. S 3,510 February ..... $ 3,834 March 3,600 f. Monthly manufacturing overhead costs are $6,500 for factory rent. $2.900 for other fixed manufacturing expenses, and $1.40 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 9. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January. Devon 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 $1.20 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 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,700 for the entire quarter, which includes depreciation on new acquisitions J. Devon Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $125,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes. ales Desi hood Begi to ireme Data Table 0 0 0 Current Assets as of December 31 (prior year) Cash Accounts receivable, net Inventory Property, plant, and equipment, net Accounts payable. Capital stock Retained earnings. 0 4,460 49,000 15,300 123,000 43,000 127,000 23,200 - - - - - - - - - - - - - Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) March Quarter Devon Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month January February 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 Enter any number in the edit fields and then click Check Answer. 10 parts 10 remaining (Chck the icon to view l wod.) Read the requirements Requirement 1. Prepare a schedule of cash collections for January February, and March, and for the quarter in total Devon Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month Cash salos S January February 24030 S 26,730 $ 53,200 56,070 7230 S 82.800 $ March Quarter 24,840 $ 75,600 62,370 171,640 87 210 S 247 240 Credits sales Total cash collections S Requirement 2. Prepare a production budget. (Hint Unit sales Sales in dollars / Selling price per unit) 920 9 890 900 Devon Manufacturing Production Budget For the Quarter Ended March 31 Month January February March Quarter Unit sales 8.900 9900 9 200 28 000 950 Plus Desired ending inventory 950 Total needed 10,820 10,150 28,950 890 920 Less Beginning inventory 90 9,000 9.830 9230 28 080 Units to produce Requirement 3. Prepare a direct materials budget (Round your answers to the nearest whole dollar) Devon Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month January February March Units to be produced Multiply by Quantity (pounds) of DM nooded per unit Quantity pounds) needed for production Plus Desired ending inventory of DM Total quantity pounds) needed Less Beginning w tory of DM Quantity pounds) to purchase ultiply by Cost per pound Total cost of purchases Enter y et in the attes and then click Checker i More Info 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 80, 100 February 89.100 March S 82,800 April 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. Devon 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 $1.50 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 0.03. 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 January $ 3,510 February $ 3,834 March 3,600 1. Monthly manufacturing overhead costs are $6,500 for factory rent, $2.900 for other fixed manufacturing expenses, and $1.40 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, Devon Manufacturing will purchase equipment for 55,800 (cash), while February's cash expenditure will be $11,000 and March's cash expenditure will be $15,800 h. Operating expenses are budgeted to be $1 20 per unit sold plus fixed operating expenses of $1,400 per month All operating expenses are paid in the month 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 $4,700 for the entire quarter which includes depreciation on new acquisitions 1. Devon Manufacturing has a polley that the ending cash balance in each month must be at least 54,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $125,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credil balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter K. The company's income tax ateis projected to be 30% of operating income less interest expense The company pays $10,800 cash at the end of February in estimated taxes Print Done * Data Table Current Assets as of December 31 (prior year): Cash .............................. Accounts receivable, net , $ Inventory Property, plant, and equipment, n Accounts payable Capital stock.. Gada. $ Retained earnings. $ $ 4,460 49,000 15,300 123,000 43,000 127,000 23,200 Capital stock Print Done

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