1. The preparation of the direct materials purchases budget for June for Palm Imagination is as follows:
<h3>Direct materials purchases budget </h3>
                                                   June 
Budgeted production           26,570
Production materials            21,256
Inventory of Fabric:
Ending Materials                    3,226
Production materials            21,256
Materials available              24,482
Beginning Materials               3,188
Unit Purchases                   21,294 yards
Cost of purchases            $42,588 ($21,294 x $2)
2. The amounts of Raw Materials and Finished Goods Inventory to be reported on Palm Imagination’s June 30 balance sheet are as follows:
Ending inventory of raw materials = $6,452.
Ending inventory of finished goods = $104,576.75.
<h3>Data and Calculations:</h3>
Silk Fabric per tree = 0.80 yards
                                           April        May        June          July     August
Budgeted production    24,160    23,490    26,570    26,880   22,900
Production materials     19,328     18,792    21,256     21,504    18,320
Inventory of Fabric:
Ending Materials             2,819       3,188       3,226        2,748
Production materials    19,328     18,792      21,256      21,504    18,320
Materials available       22,147     21,980     24,482     24,252
Beginning Materials      2,899      2,819         3,188       3,226      2,748
Purchases                   19,248      19,161      21,294     21,026
Cost of purchases   $38,496   $38,322   $42,588  $42,052
                                     April        May        June          July     August
Budgeted sales       24,500   22,800    26,250     27,850   23,000
<h3>Finished Goods:</h3>
Ending inventory       4,560     5,250       5,570       4,600
Budgeted sales       24,500  22,800    26,250     27,850   23,000
Goods available      29,060  28,050     31,820     32,450
Beginning inventory 4,900     4,560      5,250       5,570     4,600
Production units      24,160   23,490    26,570    26,880
<h3>Raw materials costs for June:</h3>
Required production materials = 21,256
Total cost of materials = $42,512 (21,256 x $2)
Direct labor costs =        $327,342.40 ($14 x 21,256 x 1.1)
Factory overhead costs = $29,227 ($1.25 x 23,381.60 hours)
Total production costs = $399,081.40
Unit production cost = $18.775 ($399,081.40/21,256)
Ending inventory of finished goods = $104,576.75 ($18.775 x 5,570)
Ending inventory of raw materials = $6,452 (3,226 x $2.00)
<h3>Question Completion:</h3>
                                           April        May        June          July     August
Budgeted production    24,160    23,490    26,570    26,880   22,900
Budgeted sales            24,500    22,800    26,250    27,850   23,000
The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs, and monthly inventories of trees equal to 20% of the number needed for next month’s sales. The cost of silk is $2.00 per yard. Direct labor cost is $14.00 per hour and it takes 66 minutes to complete each tree. Factory overhead is applied at the rate of $1.25 per direct labor dollar.
Prepare a direct materials purchases budget for June.
Calculate the amount of Raw Materials and Finished Goods Inventory to be reported on Palm Imagination’s June 30 balance sheet.
Thus, the direct materials purchases budget for June has been prepared and the amounts of Raw Materials and Finished Goods Inventory reported on Palm Imagination’s June 30 balance sheet are indicated above.
Learn more about preparing budgets at brainly.com/question/15898934
#SPJ1