Question
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
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 |
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Survey of Accounting
Authors: Carl S Warren
5th Edition
9780538489737, 538749091, 538489731, 978-0538749091
