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	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 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:

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 4b67f9ff6fc2ffd_1	fill in the blank 4b67f9ff6fc2ffd_2	fill in the blank 4b67f9ff6fc2ffd_3	fill in the blank 4b67f9ff6fc2ffd_4
DM per unit (yd.)	fill in the blank 4b67f9ff6fc2ffd_5	fill in the blank 4b67f9ff6fc2ffd_6	fill in the blank 4b67f9ff6fc2ffd_7	fill in the blank 4b67f9ff6fc2ffd_8
Production needs	fill in the blank 4b67f9ff6fc2ffd_9	fill in the blank 4b67f9ff6fc2ffd_10	fill in the blank 4b67f9ff6fc2ffd_11	fill in the blank 4b67f9ff6fc2ffd_12
Desired ending inventory (yd.)	fill in the blank 4b67f9ff6fc2ffd_13	fill in the blank 4b67f9ff6fc2ffd_14	fill in the blank 4b67f9ff6fc2ffd_15	fill in the blank 4b67f9ff6fc2ffd_16
Total needed	fill in the blank 4b67f9ff6fc2ffd_17	fill in the blank 4b67f9ff6fc2ffd_18	fill in the blank 4b67f9ff6fc2ffd_19	fill in the blank 4b67f9ff6fc2ffd_20
Less: Beginning inventory	fill in the blank 4b67f9ff6fc2ffd_21	fill in the blank 4b67f9ff6fc2ffd_22	fill in the blank 4b67f9ff6fc2ffd_23	fill in the blank 4b67f9ff6fc2ffd_24
DM to be purchased (yd.)	fill in the blank 4b67f9ff6fc2ffd_25	fill in the blank 4b67f9ff6fc2ffd_26	fill in the blank 4b67f9ff6fc2ffd_27	fill in the blank 4b67f9ff6fc2ffd_28
Cost per yard	$fill in the blank 4b67f9ff6fc2ffd_29	$fill in the blank 4b67f9ff6fc2ffd_30	$fill in the blank 4b67f9ff6fc2ffd_31	$fill in the blank 4b67f9ff6fc2ffd_32
Total purchase cost	$fill in the blank 4b67f9ff6fc2ffd_33	$fill in the blank 4b67f9ff6fc2ffd_34	$fill in the blank 4b67f9ff6fc2ffd_35	$fill in the blank 4b67f9ff6fc2ffd_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.

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

	October	November	December	Total
Units produced	fill in the blank 89f12109d004f8e_1	fill in the blank 89f12109d004f8e_2	fill in the blank 89f12109d004f8e_3	fill in the blank 89f12109d004f8e_4
DM per unit (oz.)	fill in the blank 89f12109d004f8e_5	fill in the blank 89f12109d004f8e_6	fill in the blank 89f12109d004f8e_7	fill in the blank 89f12109d004f8e_8
Production needs	fill in the blank 89f12109d004f8e_9	fill in the blank 89f12109d004f8e_10	fill in the blank 89f12109d004f8e_11	fill in the blank 89f12109d004f8e_12
Desired ending inventory (oz.)	fill in the blank 89f12109d004f8e_13	fill in the blank 89f12109d004f8e_14	fill in the blank 89f12109d004f8e_15	fill in the blank 89f12109d004f8e_16
Total needed	fill in the blank 89f12109d004f8e_17	fill in the blank 89f12109d004f8e_18	fill in the blank 89f12109d004f8e_19	fill in the blank 89f12109d004f8e_20
Less: Beginning inventory	fill in the blank 89f12109d004f8e_21	fill in the blank 89f12109d004f8e_22	fill in the blank 89f12109d004f8e_23	fill in the blank 89f12109d004f8e_24
DM to be purchased (oz.)	fill in the blank 89f12109d004f8e_25	fill in the blank 89f12109d004f8e_26	fill in the blank 89f12109d004f8e_27	fill in the blank 89f12109d004f8e_28
Cost per ounce	$fill in the blank 89f12109d004f8e_29	$fill in the blank 89f12109d004f8e_30	$fill in the blank 89f12109d004f8e_31	$fill in the blank 89f12109d004f8e_32
Total purchase cost	$fill in the blank 89f12109d004f8e_33	$fill in the blank 89f12109d004f8e_34	$fill in the blank 89f12109d004f8e_35	$fill in the blank 89f12109d004f8e_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.

Macchu Company Direct Labor Budget For the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank ce6b30fb8f94042_1	fill in the blank ce6b30fb8f94042_2	fill in the blank ce6b30fb8f94042_3	fill in the blank ce6b30fb8f94042_4
Direct labor time per unit (hours)	fill in the blank ce6b30fb8f94042_5	fill in the blank ce6b30fb8f94042_6	fill in the blank ce6b30fb8f94042_7	fill in the blank ce6b30fb8f94042_8
Direct labor hours needed	fill in the blank ce6b30fb8f94042_9	fill in the blank ce6b30fb8f94042_10	fill in the blank ce6b30fb8f94042_11	fill in the blank ce6b30fb8f94042_12
Cost per direct labor hour	$fill in the blank ce6b30fb8f94042_13	$fill in the blank ce6b30fb8f94042_14	$fill in the blank ce6b30fb8f94042_15	$fill in the blank ce6b30fb8f94042_16
Total direct labor cost	$fill in the blank ce6b30fb8f94042_17	$fill in the blank ce6b30fb8f94042_18	$fill in the blank ce6b30fb8f94042_19	$fill in the blank ce6b30fb8f94042_20