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 $16 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 655976011fe4063_1	fill in the blank 655976011fe4063_2	fill in the blank 655976011fe4063_3	fill in the blank 655976011fe4063_4
DM per unit (yd.)	fill in the blank 655976011fe4063_5	fill in the blank 655976011fe4063_6	fill in the blank 655976011fe4063_7	fill in the blank 655976011fe4063_8
Production needs	fill in the blank 655976011fe4063_9	fill in the blank 655976011fe4063_10	fill in the blank 655976011fe4063_11	fill in the blank 655976011fe4063_12
Desired ending inventory (yd.)	fill in the blank 655976011fe4063_13	fill in the blank 655976011fe4063_14	fill in the blank 655976011fe4063_15	fill in the blank 655976011fe4063_16
Total needed	fill in the blank 655976011fe4063_17	fill in the blank 655976011fe4063_18	fill in the blank 655976011fe4063_19	fill in the blank 655976011fe4063_20
Less: Beginning inventory	fill in the blank 655976011fe4063_21	fill in the blank 655976011fe4063_22	fill in the blank 655976011fe4063_23	fill in the blank 655976011fe4063_24
DM to be purchased (yd.)	fill in the blank 655976011fe4063_25	fill in the blank 655976011fe4063_26	fill in the blank 655976011fe4063_27	fill in the blank 655976011fe4063_28
Cost per yard	$fill in the blank 655976011fe4063_29	$fill in the blank 655976011fe4063_30	$fill in the blank 655976011fe4063_31	$fill in the blank 655976011fe4063_32
Total purchase cost	$fill in the blank 655976011fe4063_33	$fill in the blank 655976011fe4063_34	$fill in the blank 655976011fe4063_35	$fill in the blank 655976011fe4063_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 accd31fff059034_1	fill in the blank accd31fff059034_2	fill in the blank accd31fff059034_3	fill in the blank accd31fff059034_4
DM per unit (oz.)	fill in the blank accd31fff059034_5	fill in the blank accd31fff059034_6	fill in the blank accd31fff059034_7	fill in the blank accd31fff059034_8
Production needs	fill in the blank accd31fff059034_9	fill in the blank accd31fff059034_10	fill in the blank accd31fff059034_11	fill in the blank accd31fff059034_12
Desired ending inventory (oz.)	fill in the blank accd31fff059034_13	fill in the blank accd31fff059034_14	fill in the blank accd31fff059034_15	fill in the blank accd31fff059034_16
Total needed	fill in the blank accd31fff059034_17	fill in the blank accd31fff059034_18	fill in the blank accd31fff059034_19	fill in the blank accd31fff059034_20
Less: Beginning inventory	fill in the blank accd31fff059034_21	fill in the blank accd31fff059034_22	fill in the blank accd31fff059034_23	fill in the blank accd31fff059034_24
DM to be purchased (oz.)	fill in the blank accd31fff059034_25	fill in the blank accd31fff059034_26	fill in the blank accd31fff059034_27	fill in the blank accd31fff059034_28
Cost per ounce	$fill in the blank accd31fff059034_29	$fill in the blank accd31fff059034_30	$fill in the blank accd31fff059034_31	$fill in the blank accd31fff059034_32
Total purchase cost	$fill in the blank accd31fff059034_33	$fill in the blank accd31fff059034_34	$fill in the blank accd31fff059034_35	$fill in the blank accd31fff059034_36

Question Content Area

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 61e04efc5053f9e_1	fill in the blank 61e04efc5053f9e_2	fill in the blank 61e04efc5053f9e_3	fill in the blank 61e04efc5053f9e_4
Direct labor time per unit (hours)	fill in the blank 61e04efc5053f9e_5	fill in the blank 61e04efc5053f9e_6	fill in the blank 61e04efc5053f9e_7	fill in the blank 61e04efc5053f9e_8
Direct labor hours needed	fill in the blank 61e04efc5053f9e_9	fill in the blank 61e04efc5053f9e_10	fill in the blank 61e04efc5053f9e_11	fill in the blank 61e04efc5053f9e_12
Cost per direct labor hour	$fill in the blank 61e04efc5053f9e_13	$fill in the blank 61e04efc5053f9e_14	$fill in the blank 61e04efc5053f9e_15	$fill in the blank 61e04efc5053f9e_16
Total direct labor cost	$fill in the blank 61e04efc5053f9e_17	$fill in the blank 61e04efc5053f9e_18	$fill in the blank 61e04efc5053f9e_19	$fill in the blank 61e04efc5053f9e_20