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Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 17,000 Knox lamps and 6,000 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 (@) 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. Physical Units Budget Direct materials required for Knox lamps 17,000 Ibs. 17,000 yards Direct materials required for Ayer lamps 12,000 Ibs. 12,000 yards Total quantity of direct materials to be used 29,009 bs. 29,000 yards - X Cost Budget i Data Table Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Metal 45,000 Direct materials Fabric 20,000 Metal 3 per pound (same as in 2016) - X To be purchased and used this period Fabric $ 4 per yard (same as in 2016) 1 Data Table Metal 42,000 Direct manufacturing labor $ 22 per hour Fabric 96,000 Content of Each Product Unit Schedule 2: Production Budget (in Units) Direct materials to be used this period $ 87,000 116,000 $ 203,000 Product for the Year Ending December 31, 2017 (b). Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December 31, 2017 Knox Ayer Knox Ayer Metal 1 pounds 2 pounds Budgeted units sales 7,700 5,000 Schedule 3B: Direct Material Purchases Budget 2 yards for the Year Ending December 31, 2017 Fabric 1 yard Add target ending finished goods inventory 2,100 1,100 Direct manufacturing labor 0.1 hours 0.2 hours 19,80 7,100 Materials Total required units 2,800 1,100 Metal Fabric Total Direct Materials Deduct beginning finished goods inventory Physical Units Budget Metal Fabric Units of finished goods to be produced 17,000 6,000 To be used in production Ibs. yards Beginning inventory 15,000 pounds 6,000 yards Add target ending inventory Ibs . yards Target ending inventory 13,000 pounds 3,000 yards Print Done Total requirements Ibs. yards Deduct beginning inventory lbs. yards Print Done Purchases to be made lbs yards Cost Budget Metal Fabric Direct materials to be purchased this period Enter any number in the edit fields and then click Check Answer. part remaining Clear All Final Check