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 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	60,000
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:

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 d3a7440c2ff6f89_1	fill in the blank d3a7440c2ff6f89_2	fill in the blank d3a7440c2ff6f89_3	fill in the blank d3a7440c2ff6f89_4
DM per unit (yd.)	fill in the blank d3a7440c2ff6f89_5	fill in the blank d3a7440c2ff6f89_6	fill in the blank d3a7440c2ff6f89_7	fill in the blank d3a7440c2ff6f89_8
Production needs	fill in the blank d3a7440c2ff6f89_9	fill in the blank d3a7440c2ff6f89_10	fill in the blank d3a7440c2ff6f89_11	fill in the blank d3a7440c2ff6f89_12
Desired ending inventory (yd.)	fill in the blank d3a7440c2ff6f89_13	fill in the blank d3a7440c2ff6f89_14	fill in the blank d3a7440c2ff6f89_15	fill in the blank d3a7440c2ff6f89_16
Total needed	fill in the blank d3a7440c2ff6f89_17	fill in the blank d3a7440c2ff6f89_18	fill in the blank d3a7440c2ff6f89_19	fill in the blank d3a7440c2ff6f89_20
Less: Beginning inventory	fill in the blank d3a7440c2ff6f89_21	fill in the blank d3a7440c2ff6f89_22	fill in the blank d3a7440c2ff6f89_23	fill in the blank d3a7440c2ff6f89_24
DM to be purchased (yd.)	fill in the blank d3a7440c2ff6f89_25	fill in the blank d3a7440c2ff6f89_26	fill in the blank d3a7440c2ff6f89_27	fill in the blank d3a7440c2ff6f89_28
Cost per yard	$fill in the blank d3a7440c2ff6f89_29	$fill in the blank d3a7440c2ff6f89_30	$fill in the blank d3a7440c2ff6f89_31	$fill in the blank d3a7440c2ff6f89_32
Total purchase cost	$fill in the blank d3a7440c2ff6f89_33	$fill in the blank d3a7440c2ff6f89_34	$fill in the blank d3a7440c2ff6f89_35	$fill in the blank d3a7440c2ff6f89_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. 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 7ec721005fd700d_1	fill in the blank 7ec721005fd700d_2	fill in the blank 7ec721005fd700d_3	fill in the blank 7ec721005fd700d_4
DM per unit (oz.)	fill in the blank 7ec721005fd700d_5	fill in the blank 7ec721005fd700d_6	fill in the blank 7ec721005fd700d_7	fill in the blank 7ec721005fd700d_8
Production needs	fill in the blank 7ec721005fd700d_9	fill in the blank 7ec721005fd700d_10	fill in the blank 7ec721005fd700d_11	fill in the blank 7ec721005fd700d_12
Desired ending inventory (oz.)	fill in the blank 7ec721005fd700d_13	fill in the blank 7ec721005fd700d_14	fill in the blank 7ec721005fd700d_15	fill in the blank 7ec721005fd700d_16
Total needed	fill in the blank 7ec721005fd700d_17	fill in the blank 7ec721005fd700d_18	fill in the blank 7ec721005fd700d_19	fill in the blank 7ec721005fd700d_20
Less: Beginning inventory	fill in the blank 7ec721005fd700d_21	fill in the blank 7ec721005fd700d_22	fill in the blank 7ec721005fd700d_23	fill in the blank 7ec721005fd700d_24
DM to be purchased (oz.)	fill in the blank 7ec721005fd700d_25	fill in the blank 7ec721005fd700d_26	fill in the blank 7ec721005fd700d_27	fill in the blank 7ec721005fd700d_28
Cost per ounce	$fill in the blank 7ec721005fd700d_29	$fill in the blank 7ec721005fd700d_30	$fill in the blank 7ec721005fd700d_31	$fill in the blank 7ec721005fd700d_32
Total purchase cost	$fill in the blank 7ec721005fd700d_33	$fill in the blank 7ec721005fd700d_34	$fill in the blank 7ec721005fd700d_35	$fill in the blank 7ec721005fd700d_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. 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 a118e7ffdf8806a_1	fill in the blank a118e7ffdf8806a_2	fill in the blank a118e7ffdf8806a_3	fill in the blank a118e7ffdf8806a_4
Direct labor time per unit (hours)	fill in the blank a118e7ffdf8806a_5	fill in the blank a118e7ffdf8806a_6	fill in the blank a118e7ffdf8806a_7	fill in the blank a118e7ffdf8806a_8
Direct labor hours needed	fill in the blank a118e7ffdf8806a_9	fill in the blank a118e7ffdf8806a_10	fill in the blank a118e7ffdf8806a_11	fill in the blank a118e7ffdf8806a_12
Cost per direct labor hour	$fill in the blank a118e7ffdf8806a_13	$fill in the blank a118e7ffdf8806a_14	$fill in the blank a118e7ffdf8806a_15	$fill in the blank a118e7ffdf8806a_16
Total direct labor cost	$fill in the blank a118e7ffdf8806a_17	$fill in the blank a118e7ffdf8806a_18	$fill in the blank a118e7ffdf8806a_19	$fill in the blank a118e7ffdf8806a_20