Question 20. Tarry Jewelry produces a component for Collar pinch. Budgeted production in November is 10,200 units. Each unit requires 1/4 ounce of silver, and 3 hours of direct labor time. It is estimated that Tarry will have 450 ounces of gold on hand at November 1, and since management anticipates an Decrease in the price of silver in the coming months, the desired ending inventory at the end of April is 335 ounces. The standard cost of an ounce of silver is $125. The standard rate for direct labor is $45 per hour

1) Prepare a direct materials budget

Tarry Jewelry Direct Materials Budget For the Month Ended November 30, 2016

	Silver(ounces)

(2) Prepare a direct labor budget

Tarry Jewelry Direct Labor Budget for the Month Ended November 30, 2016

	Direct Labor