Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 25,000 Knox lamps and15,000 Ayer lamps in 2020. The following data are available for the year 2020.(Click the icon to view the information.)(Click the icon to view the December 31, 2020 production budget in units.)Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantityand dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31,2020.(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31,2020.Schedule 3A: Direct Material Usage Budget in Quantity and Dollarsfor the Year Ending December 31, 2020Physical Units BudgetDirect materials required for Knox lampsDirect materials required for Ayer lampsTotal quantity of direct materials to be usedMetalMateriallbs.lbs.lbs.FabricyardsyardsyardsTotal Schedule 2: Production Budget (in Units)for the Year Ending December 31, 2020KnoxBudgeted units salesAdd target ending finished goods inventoryTotal required unitsDeduct beginning finished goods inventoryUnits of finished goods to be producedEtext pagesPrintPhysical Units BudgetDirect materials required for Knox lampsDirect materials required for Ayer lampsTotal quantity of direct materials be usedCalculator Ask my i26,1001,60027,7002,70025,000Ayer15,00060015,600600MetalFabric15,000Data tableDirect materialsAyer. It expects to manufacture 25,000 Knox lamps andber 31, 2020 production budget in units.)BA); (b) the direct materials purchase budget in quantitybel it Schedule 4) for the year ending December 31,Direct manufacturing laborContent of Each Product UnitMetalFabricDirect manufacturing laborBeginning inventoryTarget ending inventory$2 per pound (same as in 2019)3 per yard (same as in 2019)$$ 21 per hourKnoxProduct5 pounds1.00 yard0.10 hoursDirect MaterialsMetal9,000 pounds7,000 poundsAyer6 pounds2.00 yards0.15 hoursFabric6,000 yards4,000 yardsX

The direct labor hours required are calculated as number of units used * direct labor hour required…

Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 25,000 Knox lamps and 15,000 Ayer lamps in 2020. The following data are available for the year 2020. (Click the icon to view the information.) (Click the icon to view the December 31, 2020 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020.

Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 25,000 Knox lamps and 15,000 Ayer lamps in 2020. The following data are available for the year 2020. (Click the icon to view the information.) (Click the icon to view the December 31, 2020 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020.

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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Question

Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 25,000 Knox lamps and
15,000 Ayer lamps in 2020. The following data are available for the year 2020.
(Click the icon to view the information.)
(Click the icon to view the December 31, 2020 production budget in units.)
Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity
and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31,
2020.
(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31,
2020.
Schedule 3A: Direct Material Usage Budget in Quantity and Dollars
for the Year Ending December 31, 2020
Physical Units Budget
Direct materials required for Knox lamps
Direct materials required for Ayer lamps
Total quantity of direct materials to be used
Metal
Material
lbs.
lbs.
lbs.
Fabric
yards
yards
yards
Total

Schedule 2: Production Budget (in Units)
for the Year Ending December 31, 2020
Knox
Budgeted units sales
Add target ending finished goods inventory
Total required units
Deduct beginning finished goods inventory
Units of finished goods to be produced
Etext pages
Print
Physical Units Budget
Direct materials required for Knox lamps
Direct materials required for Ayer lamps
Total quantity of direct materials be used
Calculator Ask my i
26,100
1,600
27,700
2,700
25,000
Ayer
15,000
600
15,600
600
Metal
Fabric
15,000
Data table
Direct materials
Ayer. It expects to manufacture 25,000 Knox lamps and
ber 31, 2020 production budget in units.)
BA); (b) the direct materials purchase budget in quantity
bel it Schedule 4) for the year ending December 31,
Direct manufacturing labor
Content of Each Product Unit
Metal
Fabric
Direct manufacturing labor
Beginning inventory
Target ending inventory
$
2 per pound (same as in 2019)
3 per yard (same as in 2019)
$
$ 21 per hour
Knox
Product
5 pounds
1.00 yard
0.10 hours
Direct Materials
Metal
9,000 pounds
7,000 pounds
Ayer
6 pounds
2.00 yards
0.15 hours
Fabric
6,000 yards
4,000 yards
X

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(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31,
2020.
Schedule 3A: Direct Material Usage Budget in Quantity and Dollars
for the Year Ending December 31, 2020
Physical Units Budget
Direct materials required for Knox lamps
Direct materials required for Ayer lamps
Total quantity of direct materials to be used
Metal
Material
lbs.
lbs.
lbs.
Fabric
yards
yards
yards
Total

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