Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones Of Cost Management

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

9781305147102, 1285751787, 1305147103, 978-1285751788

More Books

Students also viewed these Accounting questions

Question

2. Respect rules and constraints in your own behavior.

Answered: 1 week ago