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Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy animals; one of these is Arabeau the Cow Each Arabeau takes 0.20
Direct Materials Purchases Budget: Direct Labor Budget 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 10 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: October Units 44,000 90,000 November December January 60,000 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month's production needs and sufficient polyfiberfil be in inventory to satisfy 40 percent of the following month's production needs. Inventory of fabric and polyfiberfil 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 $16 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. 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 DM per unit (y) Production needs Desired ending inventory (yd.) De Nev
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