et (label it scent Corporation manufactures and sells two types of decorative lamps. Knox and Aver. It expects to manufacture 26,000 Knox lamps and 12,000 Ayer lamps in 2017. The following data are available for the year 2017, Click the - X udget in units.) Data Table ulate (a) s purchase dule 4) X Data Table Direct materials sical Un Metal S 2 per pound (same as in 2016) a used id Fabric S 3 per yard (same as in 2016) Schedule 2: Production Budget (In Units) Hargeted Direct manufacturing labor S 17 per hour for the Year Ending December 31, 2017 required Knox Ayer uct begin Content of Each Product Unit Budgeted units sales 26,100 12,000 Product hases to 2,500 1,500 Knox Ayer Add target ending finished goods inventory Budge Total required units 28,600 13,500 Metal 2 pounds 3 pounds 1 2,600 1,500 Fabric 1 yard 2 yards Deduct beginning finished goods inventory ic 26,000 12,000 Direct manufacturing labor 0.1 hours 0.15 hours Units of finished goods to be produced at materi Direct Materials Calculate 017. (Ente Metal Fabric Print Done Beginning inventory 10,000 pounds 10,000 yards Target ending inventory 8,000 pounds 8,000 yards rs.) Print Done Iridescent Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 28,000 Knox lamps and 12,000 Ayer lamps in 2017. The following data are available for the year 2017 (Click the icon to view the information.) (Click the icon to view the December 31, 2017 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A): (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017 (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2017 Material Metal Fabric Total 26000 yards 52000 lbs 36000 Ibs 36000 yards 62000 yards 68000 lbs. Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps Total quantity of direct materials to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-low assumption) Metal Fabric To be purchased and used this period Metal UN 1 Fabric Direct materials to be used this period (b). Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December 31, 2017. Schedule 3B: Direct Material Purchases Budget for the Year Ending December 31, 2017 Materials Metal Fabric Total Physical Units Budget To be used in production lbs. yards Add target ending inventory lbs. yards Total requirements lbs. yards Deduct beginning inventory lbs. yards Purchases to be made lbs. yards Cost Budget ILIIT Metal Fabric Direct materials to be purchased this period (c). Calculate the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017. (Enter the DMLH per unit to two decimal places. Abbreviations used: DMLH = Direct manufacturing labor-hours.) Schedule 4: Direct Manufacturing Labor Costs Budget for the Year Ending December 31, 2017 Output units DMLH Total Hourly produced per unit hours wage rate Total Knox Ayer Total
