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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 10 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	60,000
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:

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 b4f5d9f88053fea_1	fill in the blank b4f5d9f88053fea_2	fill in the blank b4f5d9f88053fea_3	fill in the blank b4f5d9f88053fea_4
DM per unit (yd.)	fill in the blank b4f5d9f88053fea_5	fill in the blank b4f5d9f88053fea_6	fill in the blank b4f5d9f88053fea_7	fill in the blank b4f5d9f88053fea_8
Production needs	fill in the blank b4f5d9f88053fea_9	fill in the blank b4f5d9f88053fea_10	fill in the blank b4f5d9f88053fea_11	fill in the blank b4f5d9f88053fea_12
Desired ending inventory (yd.)	fill in the blank b4f5d9f88053fea_13	fill in the blank b4f5d9f88053fea_14	fill in the blank b4f5d9f88053fea_15	fill in the blank b4f5d9f88053fea_16
Total needed	fill in the blank b4f5d9f88053fea_17	fill in the blank b4f5d9f88053fea_18	fill in the blank b4f5d9f88053fea_19	fill in the blank b4f5d9f88053fea_20
Less: Beginning inventory	fill in the blank b4f5d9f88053fea_21	fill in the blank b4f5d9f88053fea_22	fill in the blank b4f5d9f88053fea_23	fill in the blank b4f5d9f88053fea_24
DM to be purchased (yd.)	fill in the blank b4f5d9f88053fea_25	fill in the blank b4f5d9f88053fea_26	fill in the blank b4f5d9f88053fea_27	fill in the blank b4f5d9f88053fea_28
Cost per yard	$fill in the blank b4f5d9f88053fea_29	$fill in the blank b4f5d9f88053fea_30	$fill in the blank b4f5d9f88053fea_31	$fill in the blank b4f5d9f88053fea_32
Total purchase cost	$fill in the blank b4f5d9f88053fea_33	$fill in the blank b4f5d9f88053fea_34	$fill in the blank b4f5d9f88053fea_35	$fill in the blank b4f5d9f88053fea_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 fdc031f36fcc03d_1	fill in the blank fdc031f36fcc03d_2	fill in the blank fdc031f36fcc03d_3	fill in the blank fdc031f36fcc03d_4
DM per unit (oz.)	fill in the blank fdc031f36fcc03d_5	fill in the blank fdc031f36fcc03d_6	fill in the blank fdc031f36fcc03d_7	fill in the blank fdc031f36fcc03d_8
Production needs	fill in the blank fdc031f36fcc03d_9	fill in the blank fdc031f36fcc03d_10	fill in the blank fdc031f36fcc03d_11	fill in the blank fdc031f36fcc03d_12
Desired ending inventory (oz.)	fill in the blank fdc031f36fcc03d_13	fill in the blank fdc031f36fcc03d_14	fill in the blank fdc031f36fcc03d_15	fill in the blank fdc031f36fcc03d_16
Total needed	fill in the blank fdc031f36fcc03d_17	fill in the blank fdc031f36fcc03d_18	fill in the blank fdc031f36fcc03d_19	fill in the blank fdc031f36fcc03d_20
Less: Beginning inventory	fill in the blank fdc031f36fcc03d_21	fill in the blank fdc031f36fcc03d_22	fill in the blank fdc031f36fcc03d_23	fill in the blank fdc031f36fcc03d_24
DM to be purchased (oz.)	fill in the blank fdc031f36fcc03d_25	fill in the blank fdc031f36fcc03d_26	fill in the blank fdc031f36fcc03d_27	fill in the blank fdc031f36fcc03d_28
Cost per ounce	$fill in the blank fdc031f36fcc03d_29	$fill in the blank fdc031f36fcc03d_30	$fill in the blank fdc031f36fcc03d_31	$fill in the blank fdc031f36fcc03d_32
Total purchase cost	$fill in the blank fdc031f36fcc03d_33	$fill in the blank fdc031f36fcc03d_34	$fill in the blank fdc031f36fcc03d_35	$fill in the blank fdc031f36fcc03d_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 d59cac09207303d_1	fill in the blank d59cac09207303d_2	fill in the blank d59cac09207303d_3	fill in the blank d59cac09207303d_4
Direct labor time per unit (hours)	fill in the blank d59cac09207303d_5	fill in the blank d59cac09207303d_6	fill in the blank d59cac09207303d_7	fill in the blank d59cac09207303d_8
Direct labor hours needed	fill in the blank d59cac09207303d_9	fill in the blank d59cac09207303d_10	fill in the blank d59cac09207303d_11	fill in the blank d59cac09207303d_12
Cost per direct labor hour	$fill in the blank d59cac09207303d_13	$fill in the blank d59cac09207303d_14	$fill in the blank d59cac09207303d_15	$fill in the blank d59cac09207303d_16
Total direct labor cost	$fill in the blank d59cac09207303d_17	$fill in the blank d59cac09207303d_18	$fill in the blank d59cac09207303d_19	$fill in the blank d59cac09207303d_20