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	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 $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 217a9c0a6fc7025_1	fill in the blank 217a9c0a6fc7025_2	fill in the blank 217a9c0a6fc7025_3	fill in the blank 217a9c0a6fc7025_4
DM per unit (yd.)	fill in the blank 217a9c0a6fc7025_5	fill in the blank 217a9c0a6fc7025_6	fill in the blank 217a9c0a6fc7025_7	fill in the blank 217a9c0a6fc7025_8
Production needs	fill in the blank 217a9c0a6fc7025_9	fill in the blank 217a9c0a6fc7025_10	fill in the blank 217a9c0a6fc7025_11	fill in the blank 217a9c0a6fc7025_12
Desired ending inventory (yd.)	fill in the blank 217a9c0a6fc7025_13	fill in the blank 217a9c0a6fc7025_14	fill in the blank 217a9c0a6fc7025_15	fill in the blank 217a9c0a6fc7025_16
Total needed	fill in the blank 217a9c0a6fc7025_17	fill in the blank 217a9c0a6fc7025_18	fill in the blank 217a9c0a6fc7025_19	fill in the blank 217a9c0a6fc7025_20
Less: Beginning inventory	fill in the blank 217a9c0a6fc7025_21	fill in the blank 217a9c0a6fc7025_22	fill in the blank 217a9c0a6fc7025_23	fill in the blank 217a9c0a6fc7025_24
DM to be purchased (yd.)	fill in the blank 217a9c0a6fc7025_25	fill in the blank 217a9c0a6fc7025_26	fill in the blank 217a9c0a6fc7025_27	fill in the blank 217a9c0a6fc7025_28
Cost per yard	$fill in the blank 217a9c0a6fc7025_29	$fill in the blank 217a9c0a6fc7025_30	$fill in the blank 217a9c0a6fc7025_31	$fill in the blank 217a9c0a6fc7025_32
Total purchase cost	$fill in the blank 217a9c0a6fc7025_33	$fill in the blank 217a9c0a6fc7025_34	$fill in the blank 217a9c0a6fc7025_35	$fill in the blank 217a9c0a6fc7025_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 5fb277febff6fda_1	fill in the blank 5fb277febff6fda_2	fill in the blank 5fb277febff6fda_3	fill in the blank 5fb277febff6fda_4
DM per unit (oz.)	fill in the blank 5fb277febff6fda_5	fill in the blank 5fb277febff6fda_6	fill in the blank 5fb277febff6fda_7	fill in the blank 5fb277febff6fda_8
Production needs	fill in the blank 5fb277febff6fda_9	fill in the blank 5fb277febff6fda_10	fill in the blank 5fb277febff6fda_11	fill in the blank 5fb277febff6fda_12
Desired ending inventory (oz.)	fill in the blank 5fb277febff6fda_13	fill in the blank 5fb277febff6fda_14	fill in the blank 5fb277febff6fda_15	fill in the blank 5fb277febff6fda_16
Total needed	fill in the blank 5fb277febff6fda_17	fill in the blank 5fb277febff6fda_18	fill in the blank 5fb277febff6fda_19	fill in the blank 5fb277febff6fda_20
Less: Beginning inventory	fill in the blank 5fb277febff6fda_21	fill in the blank 5fb277febff6fda_22	fill in the blank 5fb277febff6fda_23	fill in the blank 5fb277febff6fda_24
DM to be purchased (oz.)	fill in the blank 5fb277febff6fda_25	fill in the blank 5fb277febff6fda_26	fill in the blank 5fb277febff6fda_27	fill in the blank 5fb277febff6fda_28
Cost per ounce	$fill in the blank 5fb277febff6fda_29	$fill in the blank 5fb277febff6fda_30	$fill in the blank 5fb277febff6fda_31	$fill in the blank 5fb277febff6fda_32
Total purchase cost	$fill in the blank 5fb277febff6fda_33	$fill in the blank 5fb277febff6fda_34	$fill in the blank 5fb277febff6fda_35	$fill in the blank 5fb277febff6fda_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 dd72c500cfb4fee_1	fill in the blank dd72c500cfb4fee_2	fill in the blank dd72c500cfb4fee_3	fill in the blank dd72c500cfb4fee_4
Direct labor time per unit (hours)	fill in the blank dd72c500cfb4fee_5	fill in the blank dd72c500cfb4fee_6	fill in the blank dd72c500cfb4fee_7	fill in the blank dd72c500cfb4fee_8
Direct labor hours needed	fill in the blank dd72c500cfb4fee_9	fill in the blank dd72c500cfb4fee_10	fill in the blank dd72c500cfb4fee_11	fill in the blank dd72c500cfb4fee_12
Cost per direct labor hour	$fill in the blank dd72c500cfb4fee_13	$fill in the blank dd72c500cfb4fee_14	$fill in the blank dd72c500cfb4fee_15	$fill in the blank dd72c500cfb4fee_16
Total direct labor cost	$fill in the blank dd72c500cfb4fee_17	$fill in the blank dd72c500cfb4fee_18	$fill in the blank dd72c500cfb4fee_19	$fill in the blank dd72c500cfb4fee_20