Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow. Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 8 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:

	Units
October	44,000
November	90,000
December	50,000
January	40,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following months production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following months production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour.

Required:

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1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM per unit (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Production needs	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Desired ending inventory (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total needed	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Less: Beginning inventory	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM to be purchased (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Cost per yard	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Total purchase cost	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

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2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company Direct Materials Purchases Budget for Polyfiberfill For the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM per unit (oz.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Production needs	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Desired ending inventory (oz.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total needed	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Less: Beginning inventory	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM to be purchased (oz.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Cost per ounce	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Total purchase cost	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

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3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company Direct Labor Budget For the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Direct labor time per unit (hours)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Direct labor hours needed	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Cost per direct labor hour	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Total direct labor cost	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank