Question
Direct Materials Purchases Budget: Direct Labor Budget Macchu Company produces stuffed toy animals; one of these is Andie the Llama. Each Andie takes 0.20 yard
Direct Materials Purchases Budget: Direct Labor Budget
Macchu Company produces stuffed toy animals; one of these is Andie the Llama. Each Andie 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. Macchu has budgeted production of Andies for the next four months as follows:
| Units | |
| October | 41,000 |
| November | 90,000 |
| December | 50,000 |
| January | 40,000 |
Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy 15 percent of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.
Each Andie produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour.
Required:
Question Content Area
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.
| October | November | December | Total | |
|---|---|---|---|---|
| Units produced | fill in the blank b99750018f9cf89_1 | fill in the blank b99750018f9cf89_2 | fill in the blank b99750018f9cf89_3 | fill in the blank b99750018f9cf89_4 |
| DM per unit (yd.) | fill in the blank b99750018f9cf89_5 | fill in the blank b99750018f9cf89_6 | fill in the blank b99750018f9cf89_7 | fill in the blank b99750018f9cf89_8 |
| Production needs | fill in the blank b99750018f9cf89_9 | fill in the blank b99750018f9cf89_10 | fill in the blank b99750018f9cf89_11 | fill in the blank b99750018f9cf89_12 |
| Desired ending inventory (yd.) | fill in the blank b99750018f9cf89_13 | fill in the blank b99750018f9cf89_14 | fill in the blank b99750018f9cf89_15 | fill in the blank b99750018f9cf89_16 |
| Total needed | fill in the blank b99750018f9cf89_17 | fill in the blank b99750018f9cf89_18 | fill in the blank b99750018f9cf89_19 | fill in the blank b99750018f9cf89_20 |
| Less: Beginning inventory | fill in the blank b99750018f9cf89_21 | fill in the blank b99750018f9cf89_22 | fill in the blank b99750018f9cf89_23 | fill in the blank b99750018f9cf89_24 |
| DM to be purchased (yd.) | fill in the blank b99750018f9cf89_25 | fill in the blank b99750018f9cf89_26 | fill in the blank b99750018f9cf89_27 | fill in the blank b99750018f9cf89_28 |
| Cost per yard | $fill in the blank b99750018f9cf89_29 | $fill in the blank b99750018f9cf89_30 | $fill in the blank b99750018f9cf89_31 | $fill in the blank b99750018f9cf89_32 |
| Total purchase cost | $fill in the blank b99750018f9cf89_33 | $fill in the blank b99750018f9cf89_34 | $fill in the blank b99750018f9cf89_35 | $fill in the blank b99750018f9cf89_36 |
Question Content Area
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.
| October | November | December | Total | |
|---|---|---|---|---|
| Units produced | fill in the blank 45c8e901e022fa8_1 | fill in the blank 45c8e901e022fa8_2 | fill in the blank 45c8e901e022fa8_3 | fill in the blank 45c8e901e022fa8_4 |
| DM per unit (oz.) | fill in the blank 45c8e901e022fa8_5 | fill in the blank 45c8e901e022fa8_6 | fill in the blank 45c8e901e022fa8_7 | fill in the blank 45c8e901e022fa8_8 |
| Production needs | fill in the blank 45c8e901e022fa8_9 | fill in the blank 45c8e901e022fa8_10 | fill in the blank 45c8e901e022fa8_11 | fill in the blank 45c8e901e022fa8_12 |
| Desired ending inventory (oz.) | fill in the blank 45c8e901e022fa8_13 | fill in the blank 45c8e901e022fa8_14 | fill in the blank 45c8e901e022fa8_15 | fill in the blank 45c8e901e022fa8_16 |
| Total needed | fill in the blank 45c8e901e022fa8_17 | fill in the blank 45c8e901e022fa8_18 | fill in the blank 45c8e901e022fa8_19 | fill in the blank 45c8e901e022fa8_20 |
| Less: Beginning inventory | fill in the blank 45c8e901e022fa8_21 | fill in the blank 45c8e901e022fa8_22 | fill in the blank 45c8e901e022fa8_23 | fill in the blank 45c8e901e022fa8_24 |
| DM to be purchased (oz.) | fill in the blank 45c8e901e022fa8_25 | fill in the blank 45c8e901e022fa8_26 | fill in the blank 45c8e901e022fa8_27 | fill in the blank 45c8e901e022fa8_28 |
| Cost per ounce | $fill in the blank 45c8e901e022fa8_29 | $fill in the blank 45c8e901e022fa8_30 | $fill in the blank 45c8e901e022fa8_31 | $fill in the blank 45c8e901e022fa8_32 |
| Total purchase cost | $fill in the blank 45c8e901e022fa8_33 | $fill in the blank 45c8e901e022fa8_34 | $fill in the blank 45c8e901e022fa8_35 | $fill in the blank 45c8e901e022fa8_36 |
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The Business Strategy Audit
Authors: Vernal Della-Piana, Murray Low, Kendall Lyman
1st Edition
978-0955970740
