Direct Materials and Direct Labor Budgets

Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yard of fabric and six ounces of polyfiberfill. Fabric costs $3.50 per yard, and polyfiberfill is $0.05 per ounce. Willison has budgeted production of stuffed rabbits for the next 4 months as follows:

	Units
October	20,000
November	40,000
December	25,000
January	30,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 15% of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy 30% of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each rabbit produced requires (on average) 0.10 direct labor per hour. The average cost of direct labor is $15.50 per hour.

Required:

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. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Materials Purchases Budget for Fabric
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank 976e4d068fb204f_1	fill in the blank 976e4d068fb204f_2	fill in the blank 976e4d068fb204f_3	fill in the blank 976e4d068fb204f_4
Direct materials per unit	fill in the blank 976e4d068fb204f_5	fill in the blank 976e4d068fb204f_6	fill in the blank 976e4d068fb204f_7	fill in the blank 976e4d068fb204f_8
Production needs	fill in the blank 976e4d068fb204f_9	fill in the blank 976e4d068fb204f_10	fill in the blank 976e4d068fb204f_11	fill in the blank 976e4d068fb204f_12
Desired ending inventory	fill in the blank 976e4d068fb204f_13	fill in the blank 976e4d068fb204f_14	fill in the blank 976e4d068fb204f_15	fill in the blank 976e4d068fb204f_16
Total needs	fill in the blank 976e4d068fb204f_17	fill in the blank 976e4d068fb204f_18	fill in the blank 976e4d068fb204f_19	fill in the blank 976e4d068fb204f_20
Less: Beg. inventory	fill in the blank 976e4d068fb204f_21	fill in the blank 976e4d068fb204f_22	fill in the blank 976e4d068fb204f_23	fill in the blank 976e4d068fb204f_24
Direct materials to be purchased	fill in the blank 976e4d068fb204f_25	fill in the blank 976e4d068fb204f_26	fill in the blank 976e4d068fb204f_27	fill in the blank 976e4d068fb204f_28
Cost per yard	$fill in the blank 976e4d068fb204f_29	$fill in the blank 976e4d068fb204f_30	$fill in the blank 976e4d068fb204f_31	$fill in the blank 976e4d068fb204f_32
Total purchase cost	$fill in the blank 976e4d068fb204f_33	$fill in the blank 976e4d068fb204f_34	$fill in the blank 976e4d068fb204f_35	$fill in the blank 976e4d068fb204f_36

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. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Materials Purchases Budget for Polyfiberfill
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank 17e78e08b07cfec_1	fill in the blank 17e78e08b07cfec_2	fill in the blank 17e78e08b07cfec_3	fill in the blank 17e78e08b07cfec_4
Direct materials per unit	fill in the blank 17e78e08b07cfec_5	fill in the blank 17e78e08b07cfec_6	fill in the blank 17e78e08b07cfec_7	fill in the blank 17e78e08b07cfec_8
Production needs	fill in the blank 17e78e08b07cfec_9	fill in the blank 17e78e08b07cfec_10	fill in the blank 17e78e08b07cfec_11	fill in the blank 17e78e08b07cfec_12
Desired ending inventory	fill in the blank 17e78e08b07cfec_13	fill in the blank 17e78e08b07cfec_14	fill in the blank 17e78e08b07cfec_15	fill in the blank 17e78e08b07cfec_16
Total needs	fill in the blank 17e78e08b07cfec_17	fill in the blank 17e78e08b07cfec_18	fill in the blank 17e78e08b07cfec_19	fill in the blank 17e78e08b07cfec_20
Less: Beg. inventory	fill in the blank 17e78e08b07cfec_21	fill in the blank 17e78e08b07cfec_22	fill in the blank 17e78e08b07cfec_23	fill in the blank 17e78e08b07cfec_24
Direct materials to be purchased	fill in the blank 17e78e08b07cfec_25	fill in the blank 17e78e08b07cfec_26	fill in the blank 17e78e08b07cfec_27	fill in the blank 17e78e08b07cfec_28
Cost per ounce	$fill in the blank 17e78e08b07cfec_29	$fill in the blank 17e78e08b07cfec_30	$fill in the blank 17e78e08b07cfec_31	$fill in the blank 17e78e08b07cfec_32
Total purchase cost	$fill in the blank 17e78e08b07cfec_33	$fill in the blank 17e78e08b07cfec_34	$fill in the blank 17e78e08b07cfec_35	$fill in the blank 17e78e08b07cfec_36

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. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Labor Budget
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank f752a701bfdf07b_1	fill in the blank f752a701bfdf07b_2	fill in the blank f752a701bfdf07b_3	fill in the blank f752a701bfdf07b_4
Direct labor time per unit	fill in the blank f752a701bfdf07b_5	fill in the blank f752a701bfdf07b_6	fill in the blank f752a701bfdf07b_7	fill in the blank f752a701bfdf07b_8
Total hours needed	fill in the blank f752a701bfdf07b_9	fill in the blank f752a701bfdf07b_10	fill in the blank f752a701bfdf07b_11	fill in the blank f752a701bfdf07b_12
Wages per hour	$fill in the blank f752a701bfdf07b_13	$fill in the blank f752a701bfdf07b_14	$fill in the blank f752a701bfdf07b_15	$fill in the blank f752a701bfdf07b_16
Total direct labor cost	$fill in the blank f752a701bfdf07b_17	$fill in the blank f752a701bfdf07b_18	$fill in the blank f752a701bfdf07b_19	$fill in the blank f752a701bfdf07b_20