Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Units October 44,000 November 80,000 December 50,000 January 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 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. Round your answers to the nearest cent, if required. Crescent Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter October November December Total Units produced fill in the blank 4450adfc9005f82_1 fill in the blank 4450adfc9005f82_2 fill in the blank 4450adfc9005f82_3 fill in the blank 4450adfc9005f82_4 DM per unit (yd.) fill in the blank 4450adfc9005f82_5 fill in the blank 4450adfc9005f82_6 fill in the blank 4450adfc9005f82_7 fill in the blank 4450adfc9005f82_8 Production needs fill in the blank 4450adfc9005f82_9 fill in the blank 4450adfc9005f82_10 fill in the blank 4450adfc9005f82_11 fill in the blank 4450adfc9005f82_12 Desired ending inventory (yd.) fill in the blank 4450adfc9005f82_13 fill in the blank 4450adfc9005f82_14 fill in the blank 4450adfc9005f82_15 fill in the blank 4450adfc9005f82_16 Total needed fill in the blank 4450adfc9005f82_17 fill in the blank 4450adfc9005f82_18 fill in the blank 4450adfc9005f82_19 fill in the blank 4450adfc9005f82_20 Less: Beginning inventory fill in the blank 4450adfc9005f82_21 fill in the blank 4450adfc9005f82_22 fill in the blank 4450adfc9005f82_23 fill in the blank 4450adfc9005f82_24 DM to be purchased (yd.) fill in the blank 4450adfc9005f82_25 fill in the blank 4450adfc9005f82_26 fill in the blank 4450adfc9005f82_27 fill in the blank 4450adfc9005f82_28 Cost per yard $fill in the blank 4450adfc9005f82_29 $fill in the blank 4450adfc9005f82_30 $fill in the blank 4450adfc9005f82_31 $fill in the blank 4450adfc9005f82_32 Total purchase cost $fill in the blank 4450adfc9005f82_33 $fill in the blank 4450adfc9005f82_34 $fill in the blank 4450adfc9005f82_35 $fill in the blank 4450adfc9005f82_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. Round your answers to the nearest cent, if required. Crescent Company Direct Materials Purchases Budget for Polyfiberfill For the Fourth Quarter October November December Total Units produced DM per unit (oz.) Production needs Desired ending inventory (oz.) Total needed Less: Beginning inventory DM to be purchased (oz.) 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. Round your answers to the nearest cent, if required. Crescent Company Direct Labor Budget For the Fourth Quarter October November December Total Units produced Direct labor time per unit (hours) Direct labor hours needed Cost per direct labor hour Total direct labor cost

Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Units October 44,000 November 80,000 December 50,000 January 40,000 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 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. Round your answers to the nearest cent, if required. Crescent Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter October November December Total Units produced fill in the blank 4450adfc9005f82_1 fill in the blank 4450adfc9005f82_2 fill in the blank 4450adfc9005f82_3 fill in the blank 4450adfc9005f82_4 DM per unit (yd.) fill in the blank 4450adfc9005f82_5 fill in the blank 4450adfc9005f82_6 fill in the blank 4450adfc9005f82_7 fill in the blank 4450adfc9005f82_8 Production needs fill in the blank 4450adfc9005f82_9 fill in the blank 4450adfc9005f82_10 fill in the blank 4450adfc9005f82_11 fill in the blank 4450adfc9005f82_12 Desired ending inventory (yd.) fill in the blank 4450adfc9005f82_13 fill in the blank 4450adfc9005f82_14 fill in the blank 4450adfc9005f82_15 fill in the blank 4450adfc9005f82_16 Total needed fill in the blank 4450adfc9005f82_17 fill in the blank 4450adfc9005f82_18 fill in the blank 4450adfc9005f82_19 fill in the blank 4450adfc9005f82_20 Less: Beginning inventory fill in the blank 4450adfc9005f82_21 fill in the blank 4450adfc9005f82_22 fill in the blank 4450adfc9005f82_23 fill in the blank 4450adfc9005f82_24 DM to be purchased (yd.) fill in the blank 4450adfc9005f82_25 fill in the blank 4450adfc9005f82_26 fill in the blank 4450adfc9005f82_27 fill in the blank 4450adfc9005f82_28 Cost per yard $fill in the blank 4450adfc9005f82_29 $fill in the blank 4450adfc9005f82_30 $fill in the blank 4450adfc9005f82_31 $fill in the blank 4450adfc9005f82_32 Total purchase cost $fill in the blank 4450adfc9005f82_33 $fill in the blank 4450adfc9005f82_34 $fill in the blank 4450adfc9005f82_35 $fill in the blank 4450adfc9005f82_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. Round your answers to the nearest cent, if required. Crescent Company Direct Materials Purchases Budget for Polyfiberfill For the Fourth Quarter October November December Total Units produced DM per unit (oz.) Production needs Desired ending inventory (oz.) Total needed Less: Beginning inventory DM to be purchased (oz.) 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. Round your answers to the nearest cent, if required. Crescent Company Direct Labor Budget For the Fourth Quarter October November December Total Units produced Direct labor time per unit (hours) Direct labor hours needed Cost per direct labor hour Total direct labor cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Direct Materials Purchases Budget: Direct Labor Budget

Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:

	Units
October	44,000
November	80,000
December	50,000
January	40,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 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. Round your answers to the nearest cent, if required.

Crescent Company
Direct Materials Purchases Budget for Fabric
For the Fourth Quarter
	October	November	December	Total
Units produced	fill in the blank 4450adfc9005f82_1	fill in the blank 4450adfc9005f82_2	fill in the blank 4450adfc9005f82_3	fill in the blank 4450adfc9005f82_4
DM per unit (yd.)	fill in the blank 4450adfc9005f82_5	fill in the blank 4450adfc9005f82_6	fill in the blank 4450adfc9005f82_7	fill in the blank 4450adfc9005f82_8
Production needs	fill in the blank 4450adfc9005f82_9	fill in the blank 4450adfc9005f82_10	fill in the blank 4450adfc9005f82_11	fill in the blank 4450adfc9005f82_12
Desired ending inventory (yd.)	fill in the blank 4450adfc9005f82_13	fill in the blank 4450adfc9005f82_14	fill in the blank 4450adfc9005f82_15	fill in the blank 4450adfc9005f82_16
Total needed	fill in the blank 4450adfc9005f82_17	fill in the blank 4450adfc9005f82_18	fill in the blank 4450adfc9005f82_19	fill in the blank 4450adfc9005f82_20
Less: Beginning inventory	fill in the blank 4450adfc9005f82_21	fill in the blank 4450adfc9005f82_22	fill in the blank 4450adfc9005f82_23	fill in the blank 4450adfc9005f82_24
DM to be purchased (yd.)	fill in the blank 4450adfc9005f82_25	fill in the blank 4450adfc9005f82_26	fill in the blank 4450adfc9005f82_27	fill in the blank 4450adfc9005f82_28
Cost per yard	$fill in the blank 4450adfc9005f82_29	$fill in the blank 4450adfc9005f82_30	$fill in the blank 4450adfc9005f82_31	$fill in the blank 4450adfc9005f82_32
Total purchase cost	$fill in the blank 4450adfc9005f82_33	$fill in the blank 4450adfc9005f82_34	$fill in the blank 4450adfc9005f82_35	$fill in the blank 4450adfc9005f82_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. Round your answers to the nearest cent, if required.

Crescent Company
Direct Materials Purchases Budget for Polyfiberfill
For the Fourth Quarter
	October	November	December	Total
Units produced
DM per unit (oz.)
Production needs
Desired ending inventory (oz.)
Total needed
Less: Beginning inventory
DM to be purchased (oz.)
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. Round your answers to the nearest cent, if required.

Crescent Company
Direct Labor Budget
For the Fourth Quarter
	October	November	December	Total
Units produced
Direct labor time per unit (hours)
Direct labor hours needed
Cost per direct labor hour
Total direct labor cost

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