1. 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
   DM per unit (yd.)
   Production needs
   Desired ending inventory (yd.)
   Total needed
   Less: Beginning inventory
   DM to be purchased (yd.)
   Cost per yard	$	$	$	$
   Total purchase cost	$	$	$	$

   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
   DM per unit (oz.)
   Production needs
   Desired ending inventory (oz.)
   Total needed
   Less: Beginning inventory
   DM to be purchased (oz.)
   Cost per ounce	$	$	$	$
   Total purchase cost	$	$	$	$

   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
   Direct labor time per unit (hours)
   Direct labor hours needed
   Cost per direct labor hour	$	$	$	$
   Total direct labor cost	$	$	$	$