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Iridescent Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 26,000 Knox lamps and 11,000 Ayer lamps in

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Iridescent Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 26,000 Knox lamps and 11,000 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 Physical Units Budget Direct materials required for Knox lamps 26000 lbs 26000 yards Direct materials required for Ayer lamps lbs yards Ibs yards Total quantity of direct materials to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Metal Fabric To be purchased and used this period Metal III 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 lbs. yards Add target ending inventory Total requirements lbs. yards Deduct beginning inventory lbs. yards Purchases to be made lbs. yards Cost Budget INT DO 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 hours per unit wage rate Total Knox Ayer Total direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it - X Data Table -X Data Table Direct materials Metal Fabric Direct manufacturing labor S 3 per pound (same as in 2016) $ 4 per yard (same as in 2016) In S 15 per hour Content of Each Product Unit Schedule 2: Production Budget (in Units) for the Year Ending December 31, 2017 Knox Budgated units sales 27,100 1,700 Add targel ending finished goods inventory Total required units 28,800 Deduct beginning finished goods inventory 2,800 26,000 Units of finished goods to be produced Ayer 11,000 700 Product Knox Ayer Metal 2 pounds 3 pounds 11,700 700 Fabric 1 yard 3 yards 0.25 hours 11,000 Direct manufacturing labor 0.15 hours ecember 31, 2017. ( hours.) Direct Materials Metal Fabric Print Done Beginning inventory Target ending inventory 15,000 pounds 13,000 pounds 5.000 yards 3,000 yards Print Done

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