Direct Materials Purchases Budget: Direct Labor Budget	Production	Units
Crescent Company produces stuffed toy animals; one of these is "Arabeau the Cow." Each Arabeau takes 0.25 yard of fabric (white with irregular black splotches) and eight ounces of polyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as show at the right.	October	42,000
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 40 percent of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October 2,100 yards and 134,400 oz respectively. Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour. prepare a Direct Materials Purchases Budget for Fabric and Polyfibe prepare a Direct labor budget for the product