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:

	Units
October	44,000
November	80,000
December	50,000
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 $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	fill in the blank 4edebbfd0fa1054_1	fill in the blank 4edebbfd0fa1054_2	fill in the blank 4edebbfd0fa1054_3	fill in the blank 4edebbfd0fa1054_4
DM per unit (yd.)	fill in the blank 4edebbfd0fa1054_5	fill in the blank 4edebbfd0fa1054_6	fill in the blank 4edebbfd0fa1054_7	fill in the blank 4edebbfd0fa1054_8
Production needs	fill in the blank 4edebbfd0fa1054_9	fill in the blank 4edebbfd0fa1054_10	fill in the blank 4edebbfd0fa1054_11	fill in the blank 4edebbfd0fa1054_12
Desired ending inventory (yd.)	fill in the blank 4edebbfd0fa1054_13	fill in the blank 4edebbfd0fa1054_14	fill in the blank 4edebbfd0fa1054_15	fill in the blank 4edebbfd0fa1054_16
Total needed	fill in the blank 4edebbfd0fa1054_17	fill in the blank 4edebbfd0fa1054_18	fill in the blank 4edebbfd0fa1054_19	fill in the blank 4edebbfd0fa1054_20
Less: Beginning inventory	fill in the blank 4edebbfd0fa1054_21	fill in the blank 4edebbfd0fa1054_22	fill in the blank 4edebbfd0fa1054_23	fill in the blank 4edebbfd0fa1054_24
DM to be purchased (yd.)	fill in the blank 4edebbfd0fa1054_25	fill in the blank 4edebbfd0fa1054_26	fill in the blank 4edebbfd0fa1054_27	fill in the blank 4edebbfd0fa1054_28
Cost per yard	$fill in the blank 4edebbfd0fa1054_29	$fill in the blank 4edebbfd0fa1054_30	$fill in the blank 4edebbfd0fa1054_31	$fill in the blank 4edebbfd0fa1054_32
Total purchase cost	$fill in the blank 4edebbfd0fa1054_33	$fill in the blank 4edebbfd0fa1054_34	$fill in the blank 4edebbfd0fa1054_35	$fill in the blank 4edebbfd0fa1054_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 5e870bfd4ff4f8c_1	fill in the blank 5e870bfd4ff4f8c_2	fill in the blank 5e870bfd4ff4f8c_3	fill in the blank 5e870bfd4ff4f8c_4
DM per unit (oz.)	fill in the blank 5e870bfd4ff4f8c_5	fill in the blank 5e870bfd4ff4f8c_6	fill in the blank 5e870bfd4ff4f8c_7	fill in the blank 5e870bfd4ff4f8c_8
Production needs	fill in the blank 5e870bfd4ff4f8c_9	fill in the blank 5e870bfd4ff4f8c_10	fill in the blank 5e870bfd4ff4f8c_11	fill in the blank 5e870bfd4ff4f8c_12
Desired ending inventory (oz.)	fill in the blank 5e870bfd4ff4f8c_13	fill in the blank 5e870bfd4ff4f8c_14	fill in the blank 5e870bfd4ff4f8c_15	fill in the blank 5e870bfd4ff4f8c_16
Total needed	fill in the blank 5e870bfd4ff4f8c_17	fill in the blank 5e870bfd4ff4f8c_18	fill in the blank 5e870bfd4ff4f8c_19	fill in the blank 5e870bfd4ff4f8c_20
Less: Beginning inventory	fill in the blank 5e870bfd4ff4f8c_21	fill in the blank 5e870bfd4ff4f8c_22	fill in the blank 5e870bfd4ff4f8c_23	fill in the blank 5e870bfd4ff4f8c_24
DM to be purchased (oz.)	fill in the blank 5e870bfd4ff4f8c_25	fill in the blank 5e870bfd4ff4f8c_26	fill in the blank 5e870bfd4ff4f8c_27	fill in the blank 5e870bfd4ff4f8c_28
Cost per ounce	$fill in the blank 5e870bfd4ff4f8c_29	$fill in the blank 5e870bfd4ff4f8c_30	$fill in the blank 5e870bfd4ff4f8c_31	$fill in the blank 5e870bfd4ff4f8c_32
Total purchase cost	$fill in the blank 5e870bfd4ff4f8c_33	$fill in the blank 5e870bfd4ff4f8c_34	$fill in the blank 5e870bfd4ff4f8c_35	$fill in the blank 5e870bfd4ff4f8c_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 e861a1006fc804c_1	fill in the blank e861a1006fc804c_2	fill in the blank e861a1006fc804c_3	fill in the blank e861a1006fc804c_4
Direct labor time per unit (hours)	fill in the blank e861a1006fc804c_5	fill in the blank e861a1006fc804c_6	fill in the blank e861a1006fc804c_7	fill in the blank e861a1006fc804c_8
Direct labor hours needed	fill in the blank e861a1006fc804c_9	fill in the blank e861a1006fc804c_10	fill in the blank e861a1006fc804c_11	fill in the blank e861a1006fc804c_12
Cost per direct labor hour	$fill in the blank e861a1006fc804c_13	$fill in the blank e861a1006fc804c_14	$fill in the blank e861a1006fc804c_15	$fill in the blank e861a1006fc804c_16
Total direct labor cost	$fill in the blank e861a1006fc804c_17	$fill in the blank e861a1006fc804c_18	$fill in the blank e861a1006fc804c_19	$fill in the blank e861a1006fc804c_20