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.

Macchu Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter

	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.

Macchu Company Direct Materials Purchases Budget for Polyfiberfill For the Fourth Quarter

	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