Exercise 10 -2 The cost of direct materials for one snowboard is estimated to be $80. On January 1, 2008 the balance in raw materials inventory totaled $14,400. Alpine desires to have 20 percent of the next quarter's production needs on hand at the produce 1,136 snowboards in the first quarter of 2009. Therefore, the ending inventory in direct materials in the fourth quarter of 2008 should be $18,176. end of each quarter. Alpine plans to a. Prepare a quarterly direct material purchases budget for Alpine for the year 2008. Direct Material Purchases Budget For the Year Ending December 31, 2008 First Second Third Fourth Quarter Quarter Quarter Quarter Units to be produced Cost of parts per unit Costs of parts needed Plus desired ending inventory Total needed Less beginning inventory Cost of purchases b. The snowboards are hand finished, requiring 12 hours of direct labor for each snowboard. Employees working on the snowboards average $6 per hour and work 480 hours per quarter. Prepare a quarterly direct labor budget for Alpine for 2008. Exercise 10 -2 The cost of direct materials for one snowboard is estimated to be $80. On January 1, 2008 the balance in raw materials inventory totaled $14,400. Alpine desires to have 20 percent of the next quarter's production needs on hand at the produce 1,136 snowboards in the first quarter of 2009. Therefore, the ending inventory in direct materials in the fourth quarter of 2008 should be $18,176. end of each quarter. Alpine plans to a. Prepare a quarterly direct material purchases budget for Alpine for the year 2008. Direct Material Purchases Budget For the Year Ending December 31, 2008 First Second Third Fourth Quarter Quarter Quarter Quarter Units to be produced Cost of parts per unit Costs of parts needed Plus desired ending inventory Total needed Less beginning inventory Cost of purchases b. The snowboards are hand finished, requiring 12 hours of direct labor for each snowboard. Employees working on the snowboards average $6 per hour and work 480 hours per quarter. Prepare a quarterly direct labor budget for Alpine for 2008