MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.8 direct labor hour at a rate of $16 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $10,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of August the company had 3,680 pounds of direct materials in Inventory. The company's production budget reports the following Production Budget September October November Units to produce 4,600 6,200 5,800 (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October (3) Prepare factory overhead budgets for September and October hrded Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget September Units to produce 4,600 Materials required per unit (pounds) 200 Materials needed for production (pounds) 9,200 Add: Desired ending materials inventory 4.960 Total materials required (pounds) 14,160 Less: Beginning materials inventory (3,680) Materials to purchase (pounds) 10,480 Materials cost per pound s 4.00 $ S October 6,200 2.00 12,400 4,960 17,360 (4,960) 12.400 4.00 Tabor hour ata rate of $10 per hour variable overhead is budgeted at a rate of $2 per direct labor hour. Budge $10,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% o materials requirement. At the end of August the company had 3,680 pounds of direct materials in inventory. T budget reports the following. Production Budget September October November Units to produce 4,600 6,200 5,800 (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October (3) Prepare factory overhead budgets for September and October. d Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget September Units to produce 4,600 Materials required per unit (pounds) 2.00 Materials needed for production (pounds) 9,200 Add: Desired ending materials inventory 4,960 Total materials required (pounds) 14,160 Less: Beginning materials inventory (3,680) Materials to purchase (pounds) 10,480 Materials cost per pound $ 4.00 Cost of direct materials purchases $ 41.920 October 6,200 2.00 12,400 4,960 X 17,360 (4.960) 12,400 4.00 49,600 $ Required: Required 2 >
