1. Use the Dynamic Exhibit to answer the following questions.

   1. When the number of wallets to be sold is 528,000 and the number of handbags to be sold is 280, 000, the direct materials to be purchased is $, the direct labor cost budget is $ and the cost of goods sold budget is $.

   2. When the number of wallets to be sold is 700,000 and the number of handbags to be sold is 108, 000, the direct materials to be purchased is $, the direct labor cost budget is $ and the cost of goods sold budget is $.

   3. When the number of wallets to be sold is 280,000 and the number of handbags to be sold is 528, 000, the direct materials to be purchased is $, the direct labor cost budget is $ and the cost of goods sold budget is $.

   4. Why is the budget for direct materials to be purchased different than the cost of direct materials put into production?

   1. The cost of materials placed into production is always more than the materials to be purchased
   2. The cost of materials placed into production is always less than the materials to be purchased
   3. The cost of leather is more than the cost of lining
   4. There is beginning inventory and desired ending inventory in the problem

   d

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