Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yard of fabric and six ounces of polyfiberfill. Fabric costs $3.50 per yard, and polyfiberfill is $0.05 per ounce. Willison has budgeted production of stuffed rabbits for the next 4 months as follows:

	Units
October	20,000
November	40,000
December	25,000
January	30,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 15% of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy 30% of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each rabbit produced requires (on average) 0.10 direct labor per hour. The average cost of direct labor is $15.50 per hour.

Required:

1. Prepare a direct materials purchases budget of fabric for the last quarter of the year, showing purchases in units and in dollars for each month and for the quarter in total. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Materials Purchases Budget for Fabric
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank f5100d03cfb6058_1	fill in the blank f5100d03cfb6058_2	fill in the blank f5100d03cfb6058_3	fill in the blank f5100d03cfb6058_4
Direct materials per unit	fill in the blank f5100d03cfb6058_5	fill in the blank f5100d03cfb6058_6	fill in the blank f5100d03cfb6058_7	fill in the blank f5100d03cfb6058_8
Production needs	fill in the blank f5100d03cfb6058_9	fill in the blank f5100d03cfb6058_10	fill in the blank f5100d03cfb6058_11	fill in the blank f5100d03cfb6058_12
Desired ending inventory	fill in the blank f5100d03cfb6058_13	fill in the blank f5100d03cfb6058_14	fill in the blank f5100d03cfb6058_15	fill in the blank f5100d03cfb6058_16
Total needs	fill in the blank f5100d03cfb6058_17	fill in the blank f5100d03cfb6058_18	fill in the blank f5100d03cfb6058_19	fill in the blank f5100d03cfb6058_20
Less: Beg. inventory	fill in the blank f5100d03cfb6058_21	fill in the blank f5100d03cfb6058_22	fill in the blank f5100d03cfb6058_23	fill in the blank f5100d03cfb6058_24
Direct materials to be purchased	fill in the blank f5100d03cfb6058_25	fill in the blank f5100d03cfb6058_26	fill in the blank f5100d03cfb6058_27	fill in the blank f5100d03cfb6058_28
Cost per yard	$fill in the blank f5100d03cfb6058_29	$fill in the blank f5100d03cfb6058_30	$fill in the blank f5100d03cfb6058_31	$fill in the blank f5100d03cfb6058_32
Total purchase cost	$fill in the blank f5100d03cfb6058_33	$fill in the blank f5100d03cfb6058_34	$fill in the blank f5100d03cfb6058_35	$fill in the blank f5100d03cfb6058_36

2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year, showing purchases in units and in dollars for each month and for the quarter in total. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Materials Purchases Budget for Polyfiberfill
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank 7fbee50bffec06e_1	fill in the blank 7fbee50bffec06e_2	fill in the blank 7fbee50bffec06e_3	fill in the blank 7fbee50bffec06e_4
Direct materials per unit	fill in the blank 7fbee50bffec06e_5	fill in the blank 7fbee50bffec06e_6	fill in the blank 7fbee50bffec06e_7	fill in the blank 7fbee50bffec06e_8
Production needs	fill in the blank 7fbee50bffec06e_9	fill in the blank 7fbee50bffec06e_10	fill in the blank 7fbee50bffec06e_11	fill in the blank 7fbee50bffec06e_12
Desired ending inventory	fill in the blank 7fbee50bffec06e_13	fill in the blank 7fbee50bffec06e_14	fill in the blank 7fbee50bffec06e_15	fill in the blank 7fbee50bffec06e_16
Total needs	fill in the blank 7fbee50bffec06e_17	fill in the blank 7fbee50bffec06e_18	fill in the blank 7fbee50bffec06e_19	fill in the blank 7fbee50bffec06e_20
Less: Beg. inventory	fill in the blank 7fbee50bffec06e_21	fill in the blank 7fbee50bffec06e_22	fill in the blank 7fbee50bffec06e_23	fill in the blank 7fbee50bffec06e_24
Direct materials to be purchased	fill in the blank 7fbee50bffec06e_25	fill in the blank 7fbee50bffec06e_26	fill in the blank 7fbee50bffec06e_27	fill in the blank 7fbee50bffec06e_28
Cost per ounce	$fill in the blank 7fbee50bffec06e_29	$fill in the blank 7fbee50bffec06e_30	$fill in the blank 7fbee50bffec06e_31	$fill in the blank 7fbee50bffec06e_32
Total purchase cost	$fill in the blank 7fbee50bffec06e_33	$fill in the blank 7fbee50bffec06e_34	$fill in the blank 7fbee50bffec06e_35	$fill in the blank 7fbee50bffec06e_36

3. Prepare a direct labor budget for the last quarter of the year, showing the hours needed and the direct labor cost for each month and for the quarter in total. Do not include a multiplication symbol as part of your answer.

Willison Company
Direct Labor Budget
For the Fourth Quarter
	October	November	December	Total
Units to be produced	fill in the blank aa306df8cfcc037_1	fill in the blank aa306df8cfcc037_2	fill in the blank aa306df8cfcc037_3	fill in the blank aa306df8cfcc037_4
Direct labor time per unit	fill in the blank aa306df8cfcc037_5	fill in the blank aa306df8cfcc037_6	fill in the blank aa306df8cfcc037_7	fill in the blank aa306df8cfcc037_8
Total hours needed	fill in the blank aa306df8cfcc037_9	fill in the blank aa306df8cfcc037_10	fill in the blank aa306df8cfcc037_11	fill in the blank aa306df8cfcc037_12
Wages per hour	$fill in the blank aa306df8cfcc037_13	$fill in the blank aa306df8cfcc037_14	$fill in the blank aa306df8cfcc037_15	$fill in the blank aa306df8cfcc037_16
Total direct labor cost	$fill in the blank aa306df8cfcc037_17	$fill in the blank aa306df8cfcc037_18	$fill in the blank aa306df8cfcc037_19	$fill in the blank aa306df8cfcc037_20