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
Direct materials per unit
Production needs
Desired ending inventory
Total needs
Less: Beg. inventory
Direct materials to be purchased
Cost per yard	$	$	$	$
Total purchase cost	$	$	$	$

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
Direct materials per unit
Production needs
Desired ending inventory
Total needs
Less: Beg. inventory
Direct materials to be purchased
Cost per ounce	$	$	$	$
Total purchase cost	$	$	$	$

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
Direct labor time per unit
Total hours needed
Wages per hour	$	$	$	$
Total direct labor cost	$	$	$	$