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 41,000 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 $16 per hour. Required: Question Content Area 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 CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter October November December Total Units produced fill in the blank fill in the blank fill in the blank fill in the blank DM per unit (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Production needs fill in the blank fill in the blank fill in the blank fill in the blank Desired ending inventory (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Total needed fill in the blank f7757afe0f95003_17 fill in the blank f7757afe0f95003_18 fill in the blank f7757afe0f95003_19 fill in the blank f7757afe0f95003_20 Less: Beginning inventory fill in the blank f7757afe0f95003_21 fill in the blank f7757afe0f95003_22 fill in the blank f7757afe0f95003_23 fill in the blank f7757afe0f95003_24 DM to be purchased (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Cost per yard $fill in the blank $fill in the blank $fill in the blank $fill in the blank Total purchase cost $fill in the blank $fill in the blank $fill in the blank $fill in the blank Question Content Area 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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter October November December Total Units produced fill in the blank fill in the blank fill in the blank fill in the blank DM per unit (oz.) fill in the blank fill in the blank fill in the blank fill in the blank Production needs fill in the blank fill in the blank fill in the blank fill in the blank c8ce0efc9053fb2_12 Desired ending inventory (oz.) fill in the blank 3 fill in the blank fill in the blank fill in the blank Total needed fill in the blank fill in the blank fill in the blank fill in the blank Less: Beginning inventory fill in the blank fill in the blank fill in the blank fill in the blank DM to be purchased (oz.) fill in the blank c8ce0efc9053fb2_25 fill in the blank c8ce0efc9053fb2_26 fill in the blank c8ce0efc9053fb2_27 fill in the blank c8ce0efc9053fb2_28 Cost per ounce $fill in the blank c8ce0efc9053fb2_29 $fill in the blank c8ce0efc9053fb2_30 $fill in the blank c8ce0efc9053fb2_31 $fill in the blank c8ce0efc9053fb2_32 Total purchase cost $fill in the blank c8ce0efc9053fb2_33 $fill in the blank c8ce0efc9053fb2_34 $fill in the blank c8ce0efc9053fb2_35 $fill in the blank c8ce0efc9053fb2_36 Question Content Area 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 CompanyDirect Labor BudgetFor the Fourth Quarter October November December Total Units produced fill in the blank 8962b5f89fc2011_1 fill in the blank 8962b5f89fc2011_2 fill in the blank 8962b5f89fc2011_3 fill in the blank 8962b5f89fc2011_4 Direct labor time per unit (hours) fill in the blank 8962b5f89fc2011_5 fill in the blank 8962b5f89fc2011_6 fill in the blank 8962b5f89fc2011_7 fill in the blank 8962b5f89fc2011_8 Direct labor hours needed fill in the blank 8962b5f89fc2011_9 fill in the blank 8962b5f89fc2011_10 fill in the blank 8962b5f89fc2011_11 fill in the blank 8962b5f89fc2011_12 Cost per direct labor hour $fill in the blank 8962b5f89fc2011_13 $fill in the blank 8962b5f89fc2011_14 $fill in the blank 8962b5f89fc2011_15 $fill in the blank 8962b5f89fc2011_16 Total direct labor cost $fill in the blank 8962b5f89fc2011_17 $fill in the blank 8962b5f89fc2011_18 $fill in the blank 8962b5f89fc2011_19 $fill in the blank 8962b5f89fc2011_20

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 41,000 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 $16 per hour. Required: Question Content Area 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 CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter October November December Total Units produced fill in the blank fill in the blank fill in the blank fill in the blank DM per unit (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Production needs fill in the blank fill in the blank fill in the blank fill in the blank Desired ending inventory (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Total needed fill in the blank f7757afe0f95003_17 fill in the blank f7757afe0f95003_18 fill in the blank f7757afe0f95003_19 fill in the blank f7757afe0f95003_20 Less: Beginning inventory fill in the blank f7757afe0f95003_21 fill in the blank f7757afe0f95003_22 fill in the blank f7757afe0f95003_23 fill in the blank f7757afe0f95003_24 DM to be purchased (yd.) fill in the blank fill in the blank fill in the blank fill in the blank Cost per yard $fill in the blank $fill in the blank $fill in the blank $fill in the blank Total purchase cost $fill in the blank $fill in the blank $fill in the blank $fill in the blank Question Content Area 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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter October November December Total Units produced fill in the blank fill in the blank fill in the blank fill in the blank DM per unit (oz.) fill in the blank fill in the blank fill in the blank fill in the blank Production needs fill in the blank fill in the blank fill in the blank fill in the blank c8ce0efc9053fb2_12 Desired ending inventory (oz.) fill in the blank 3 fill in the blank fill in the blank fill in the blank Total needed fill in the blank fill in the blank fill in the blank fill in the blank Less: Beginning inventory fill in the blank fill in the blank fill in the blank fill in the blank DM to be purchased (oz.) fill in the blank c8ce0efc9053fb2_25 fill in the blank c8ce0efc9053fb2_26 fill in the blank c8ce0efc9053fb2_27 fill in the blank c8ce0efc9053fb2_28 Cost per ounce $fill in the blank c8ce0efc9053fb2_29 $fill in the blank c8ce0efc9053fb2_30 $fill in the blank c8ce0efc9053fb2_31 $fill in the blank c8ce0efc9053fb2_32 Total purchase cost $fill in the blank c8ce0efc9053fb2_33 $fill in the blank c8ce0efc9053fb2_34 $fill in the blank c8ce0efc9053fb2_35 $fill in the blank c8ce0efc9053fb2_36 Question Content Area 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 CompanyDirect Labor BudgetFor the Fourth Quarter October November December Total Units produced fill in the blank 8962b5f89fc2011_1 fill in the blank 8962b5f89fc2011_2 fill in the blank 8962b5f89fc2011_3 fill in the blank 8962b5f89fc2011_4 Direct labor time per unit (hours) fill in the blank 8962b5f89fc2011_5 fill in the blank 8962b5f89fc2011_6 fill in the blank 8962b5f89fc2011_7 fill in the blank 8962b5f89fc2011_8 Direct labor hours needed fill in the blank 8962b5f89fc2011_9 fill in the blank 8962b5f89fc2011_10 fill in the blank 8962b5f89fc2011_11 fill in the blank 8962b5f89fc2011_12 Cost per direct labor hour $fill in the blank 8962b5f89fc2011_13 $fill in the blank 8962b5f89fc2011_14 $fill in the blank 8962b5f89fc2011_15 $fill in the blank 8962b5f89fc2011_16 Total direct labor cost $fill in the blank 8962b5f89fc2011_17 $fill in the blank 8962b5f89fc2011_18 $fill in the blank 8962b5f89fc2011_19 $fill in the blank 8962b5f89fc2011_20

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 Content Area

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 CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM per unit (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Production needs	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Desired ending inventory (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total needed	fill in the blank f7757afe0f95003_17	fill in the blank f7757afe0f95003_18	fill in the blank f7757afe0f95003_19	fill in the blank f7757afe0f95003_20
Less: Beginning inventory	fill in the blank f7757afe0f95003_21	fill in the blank f7757afe0f95003_22	fill in the blank f7757afe0f95003_23	fill in the blank f7757afe0f95003_24
DM to be purchased (yd.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Cost per yard	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Total purchase cost	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

Question Content Area

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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM per unit (oz.)	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Production needs	fill in the blank	fill in the blank	fill in the blank	fill in the blank c8ce0efc9053fb2_12
Desired ending inventory (oz.)	fill in the blank 3	fill in the blank	fill in the blank	fill in the blank
Total needed	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Less: Beginning inventory	fill in the blank	fill in the blank	fill in the blank	fill in the blank
DM to be purchased (oz.)	fill in the blank c8ce0efc9053fb2_25	fill in the blank c8ce0efc9053fb2_26	fill in the blank c8ce0efc9053fb2_27	fill in the blank c8ce0efc9053fb2_28
Cost per ounce	$fill in the blank c8ce0efc9053fb2_29	$fill in the blank c8ce0efc9053fb2_30	$fill in the blank c8ce0efc9053fb2_31	$fill in the blank c8ce0efc9053fb2_32
Total purchase cost	$fill in the blank c8ce0efc9053fb2_33	$fill in the blank c8ce0efc9053fb2_34	$fill in the blank c8ce0efc9053fb2_35	$fill in the blank c8ce0efc9053fb2_36

Question Content Area

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 CompanyDirect Labor BudgetFor the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank 8962b5f89fc2011_1	fill in the blank 8962b5f89fc2011_2	fill in the blank 8962b5f89fc2011_3	fill in the blank 8962b5f89fc2011_4
Direct labor time per unit (hours)	fill in the blank 8962b5f89fc2011_5	fill in the blank 8962b5f89fc2011_6	fill in the blank 8962b5f89fc2011_7	fill in the blank 8962b5f89fc2011_8
Direct labor hours needed	fill in the blank 8962b5f89fc2011_9	fill in the blank 8962b5f89fc2011_10	fill in the blank 8962b5f89fc2011_11	fill in the blank 8962b5f89fc2011_12
Cost per direct labor hour	$fill in the blank 8962b5f89fc2011_13	$fill in the blank 8962b5f89fc2011_14	$fill in the blank 8962b5f89fc2011_15	$fill in the blank 8962b5f89fc2011_16
Total direct labor cost	$fill in the blank 8962b5f89fc2011_17	$fill in the blank 8962b5f89fc2011_18	$fill in the blank 8962b5f89fc2011_19	$fill in the blank 8962b5f89fc2011_20

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