Brighter Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture $26,000$ Knox lamps and $14,000$ Ayer lamps in $2020.$ The following data are available for the year $2020.$

$($Click the icon to view the information.$)($Click the icon to view the December $31,2020$ production budget in units.$)$

Calculate $($a$)$ the direct materials usage budget in quantity and dollars $($label it Schedule $3$A$)$; $($b$)$ the direct materials purchase budget in quantity and dollars $($label it Schedule $3$B$)$; and $($c$)$ the direct manufacturing labor costs budget $($label it Schedule $4)$ for the year ending December $31,2020.$

$($a$).$ Begin by calculating the direct materials usage budget in quantity and then in dollars $($label it Schedule $3$A$)$ for the year ending December $31,2020.$

Schedule $3$A: Direct Material Usage Budget in Quantity and Dollars

for the Year Ending December $31,2020$

$\backslash$table$[[,$Material,$],[,$Metal,Fabric,Total$]]$

Physical Units Budget

Direct materials required for Knox lamps

Ibs. yards

Direct materials required for Ayer lamps

Ibs. yards

Total quantity of direct materials to be used Ibs. yards

Cost Budget

Available from beginning direct materials inventory

$($under a FIFO cost$-$flow assumption$)$

Metal

Fabric

To be purchased and used this period

Metal

Fabric

Direct materials to be used this period

$($b$).$ Calculate the direct materials purchase budget in quantity and dollars $($label it Schedule $3$B$)$ for the year ending December $31,2020.$

Schedule $3$B: Direct Material Purchases Budget

for the Year Ending December $31,2020$

$\backslash$table$[[,$Materials,Total$],[,$Metal,Fabric$],[$Physical Units Budget$],[$To be used in production,$\backslash$table$[[$Ibs$.],[$Ibs$.]],$yards,$],[$Add target ending inventory,yards,$],[$Total requirements,Ibs.,yards,$],[$Deduct beginning inventory,$\backslash$table$[[$Ibs$.],[$Ibs$.]],\_$yards,$],[$Purchases to be made,$\_$ yards,$],[$Cost Budget,$],[$Metal$],[$Fabric$,,,]]$

Direct materials to be purchased this period

$($c$).$ Calculate the direct manufacturing labor costs budget $($label it Schedule $4)$ for the year ending December $31,2020.($Enter the DMLH per unit to two decimal places. Abbreviations used: DMLH $=$ Direct manufacturing labor$-$hours.$)$

Schedule $4$: Direct Manufacturing Labor Costs Budget

for the Year Ending December $31,2020$

$\backslash$table$[[,\backslash$table$[[$Output units$],[$produced$]],\backslash$table$[[$DMLH$],[$per unit$]],\backslash$table$[[$Total$],[$hours$]],\backslash$table$[[$Hourly$],[$wage rate$]],$Total$],[$Knox$],[$Ayer$],[$Total$,,,,,]]$

Data table

Direct materials

Metal

$ $2$ per pound $($same as in $2019)$

Fabric

$ $3$ per yard $($same as in $2019)$

Direct manufacturing labor

$ $18$ per hour

Content of Each Product Unit

$\backslash$table$[[,$Product$],[,$Knox,Ayer$],[$Metal$,2$ pounds,$3$ pounds$],[$Fabric$,1\mathrm{.}00$ yard,$2\mathrm{.}00$ yards$],[$Direct manufacturing labor,$0\mathrm{.}25$ hours,$0\mathrm{.}30$ hours$],[$Direct Materials$],[$Metal$,$Fabric$],[$Beginning inventory,$18,000$ pounds,$6,000$ yards$],[$Target ending inventory,$16,000$ pounds,$4,000$ yards$]]$

Data table

$\backslash$table$[[\backslash$table$[[$Schedule $2$: Production Budget $($in Units$)],[$for the Year Ending December $31,2020]]],[,$Knox,Ayer$],[$Budgeted units sales,$27,300,14,000],[$Add target ending finished goods inventory,$1,500,500],[$Total required units,$28,800,14,500],[$Deduct beginning finished goods inventory,$2,800,500],[$Units of finished goods to be produced,$26,000,14,000]]$