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 8 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 cb545a053fb501f_1 fill in the blank cb545a053fb501f_2 fill in the blank cb545a053fb501f_3 fill in the blank cb545a053fb501f_4 DM per unit (yd.) fill in the blank cb545a053fb501f_5 fill in the blank cb545a053fb501f_6 fill in the blank cb545a053fb501f_7 fill in the blank cb545a053fb501f_8 Production needs fill in the blank cb545a053fb501f_9 fill in the blank cb545a053fb501f_10 fill in the blank cb545a053fb501f_11 fill in the blank cb545a053fb501f_12 Desired ending inventory (yd.) fill in the blank cb545a053fb501f_13 fill in the blank cb545a053fb501f_14 fill in the blank cb545a053fb501f_15 fill in the blank cb545a053fb501f_16 Total needed fill in the blank cb545a053fb501f_17 fill in the blank cb545a053fb501f_18 fill in the blank cb545a053fb501f_19 fill in the blank cb545a053fb501f_20 Less: Beginning inventory fill in the blank cb545a053fb501f_21 fill in the blank cb545a053fb501f_22 fill in the blank cb545a053fb501f_23 fill in the blank cb545a053fb501f_24 DM to be purchased (yd.) fill in the blank cb545a053fb501f_25 fill in the blank cb545a053fb501f_26 fill in the blank cb545a053fb501f_27 fill in the blank cb545a053fb501f_28 Cost per yard $fill in the blank cb545a053fb501f_29 $fill in the blank cb545a053fb501f_30 $fill in the blank cb545a053fb501f_31 $fill in the blank cb545a053fb501f_32 Total purchase cost $fill in the blank cb545a053fb501f_33 $fill in the blank cb545a053fb501f_34 $fill in the blank cb545a053fb501f_35 $fill in the blank cb545a053fb501f_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 fill in the blank 2d06f6ff303f01e_1 fill in the blank 2d06f6ff303f01e_2 fill in the blank 2d06f6ff303f01e_3 fill in the blank 2d06f6ff303f01e_4 DM per unit (oz.) fill in the blank 2d06f6ff303f01e_5 fill in the blank 2d06f6ff303f01e_6 fill in the blank 2d06f6ff303f01e_7 fill in the blank 2d06f6ff303f01e_8 Production needs fill in the blank 2d06f6ff303f01e_9 fill in the blank 2d06f6ff303f01e_10 fill in the blank 2d06f6ff303f01e_11 fill in the blank 2d06f6ff303f01e_12 Desired ending inventory (oz.) fill in the blank 2d06f6ff303f01e_13 fill in the blank 2d06f6ff303f01e_14 fill in the blank 2d06f6ff303f01e_15 fill in the blank 2d06f6ff303f01e_16 Total needed fill in the blank 2d06f6ff303f01e_17 fill in the blank 2d06f6ff303f01e_18 fill in the blank 2d06f6ff303f01e_19 fill in the blank 2d06f6ff303f01e_20 Less: Beginning inventory fill in the blank 2d06f6ff303f01e_21 fill in the blank 2d06f6ff303f01e_22 fill in the blank 2d06f6ff303f01e_23 fill in the blank 2d06f6ff303f01e_24 DM to be purchased (oz.) fill in the blank 2d06f6ff303f01e_25 fill in the blank 2d06f6ff303f01e_26 fill in the blank 2d06f6ff303f01e_27 fill in the blank 2d06f6ff303f01e_28 Cost per ounce $fill in the blank 2d06f6ff303f01e_29 $fill in the blank 2d06f6ff303f01e_30 $fill in the blank 2d06f6ff303f01e_31 $fill in the blank 2d06f6ff303f01e_32 Total purchase cost $fill in the blank $fill in the blank $fill in the blank 2d06f6ff303f01e_35 $fill in the blank 2d06f6ff303f01e_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. 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

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 8 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 cb545a053fb501f_1 fill in the blank cb545a053fb501f_2 fill in the blank cb545a053fb501f_3 fill in the blank cb545a053fb501f_4 DM per unit (yd.) fill in the blank cb545a053fb501f_5 fill in the blank cb545a053fb501f_6 fill in the blank cb545a053fb501f_7 fill in the blank cb545a053fb501f_8 Production needs fill in the blank cb545a053fb501f_9 fill in the blank cb545a053fb501f_10 fill in the blank cb545a053fb501f_11 fill in the blank cb545a053fb501f_12 Desired ending inventory (yd.) fill in the blank cb545a053fb501f_13 fill in the blank cb545a053fb501f_14 fill in the blank cb545a053fb501f_15 fill in the blank cb545a053fb501f_16 Total needed fill in the blank cb545a053fb501f_17 fill in the blank cb545a053fb501f_18 fill in the blank cb545a053fb501f_19 fill in the blank cb545a053fb501f_20 Less: Beginning inventory fill in the blank cb545a053fb501f_21 fill in the blank cb545a053fb501f_22 fill in the blank cb545a053fb501f_23 fill in the blank cb545a053fb501f_24 DM to be purchased (yd.) fill in the blank cb545a053fb501f_25 fill in the blank cb545a053fb501f_26 fill in the blank cb545a053fb501f_27 fill in the blank cb545a053fb501f_28 Cost per yard $fill in the blank cb545a053fb501f_29 $fill in the blank cb545a053fb501f_30 $fill in the blank cb545a053fb501f_31 $fill in the blank cb545a053fb501f_32 Total purchase cost $fill in the blank cb545a053fb501f_33 $fill in the blank cb545a053fb501f_34 $fill in the blank cb545a053fb501f_35 $fill in the blank cb545a053fb501f_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 fill in the blank 2d06f6ff303f01e_1 fill in the blank 2d06f6ff303f01e_2 fill in the blank 2d06f6ff303f01e_3 fill in the blank 2d06f6ff303f01e_4 DM per unit (oz.) fill in the blank 2d06f6ff303f01e_5 fill in the blank 2d06f6ff303f01e_6 fill in the blank 2d06f6ff303f01e_7 fill in the blank 2d06f6ff303f01e_8 Production needs fill in the blank 2d06f6ff303f01e_9 fill in the blank 2d06f6ff303f01e_10 fill in the blank 2d06f6ff303f01e_11 fill in the blank 2d06f6ff303f01e_12 Desired ending inventory (oz.) fill in the blank 2d06f6ff303f01e_13 fill in the blank 2d06f6ff303f01e_14 fill in the blank 2d06f6ff303f01e_15 fill in the blank 2d06f6ff303f01e_16 Total needed fill in the blank 2d06f6ff303f01e_17 fill in the blank 2d06f6ff303f01e_18 fill in the blank 2d06f6ff303f01e_19 fill in the blank 2d06f6ff303f01e_20 Less: Beginning inventory fill in the blank 2d06f6ff303f01e_21 fill in the blank 2d06f6ff303f01e_22 fill in the blank 2d06f6ff303f01e_23 fill in the blank 2d06f6ff303f01e_24 DM to be purchased (oz.) fill in the blank 2d06f6ff303f01e_25 fill in the blank 2d06f6ff303f01e_26 fill in the blank 2d06f6ff303f01e_27 fill in the blank 2d06f6ff303f01e_28 Cost per ounce $fill in the blank 2d06f6ff303f01e_29 $fill in the blank 2d06f6ff303f01e_30 $fill in the blank 2d06f6ff303f01e_31 $fill in the blank 2d06f6ff303f01e_32 Total purchase cost $fill in the blank $fill in the blank $fill in the blank 2d06f6ff303f01e_35 $fill in the blank 2d06f6ff303f01e_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. 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

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Direct Materials Purchases Budget: Direct Labor Budget

	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 cb545a053fb501f_1	fill in the blank cb545a053fb501f_2	fill in the blank cb545a053fb501f_3	fill in the blank cb545a053fb501f_4
DM per unit (yd.)	fill in the blank cb545a053fb501f_5	fill in the blank cb545a053fb501f_6	fill in the blank cb545a053fb501f_7	fill in the blank cb545a053fb501f_8
Production needs	fill in the blank cb545a053fb501f_9	fill in the blank cb545a053fb501f_10	fill in the blank cb545a053fb501f_11	fill in the blank cb545a053fb501f_12
Desired ending inventory (yd.)	fill in the blank cb545a053fb501f_13	fill in the blank cb545a053fb501f_14	fill in the blank cb545a053fb501f_15	fill in the blank cb545a053fb501f_16
Total needed	fill in the blank cb545a053fb501f_17	fill in the blank cb545a053fb501f_18	fill in the blank cb545a053fb501f_19	fill in the blank cb545a053fb501f_20
Less: Beginning inventory	fill in the blank cb545a053fb501f_21	fill in the blank cb545a053fb501f_22	fill in the blank cb545a053fb501f_23	fill in the blank cb545a053fb501f_24
DM to be purchased (yd.)	fill in the blank cb545a053fb501f_25	fill in the blank cb545a053fb501f_26	fill in the blank cb545a053fb501f_27	fill in the blank cb545a053fb501f_28
Cost per yard	$fill in the blank cb545a053fb501f_29	$fill in the blank cb545a053fb501f_30	$fill in the blank cb545a053fb501f_31	$fill in the blank cb545a053fb501f_32
Total purchase cost	$fill in the blank cb545a053fb501f_33	$fill in the blank cb545a053fb501f_34	$fill in the blank cb545a053fb501f_35	$fill in the blank cb545a053fb501f_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	fill in the blank 2d06f6ff303f01e_1	fill in the blank 2d06f6ff303f01e_2	fill in the blank 2d06f6ff303f01e_3	fill in the blank 2d06f6ff303f01e_4
DM per unit (oz.)	fill in the blank 2d06f6ff303f01e_5	fill in the blank 2d06f6ff303f01e_6	fill in the blank 2d06f6ff303f01e_7	fill in the blank 2d06f6ff303f01e_8
Production needs	fill in the blank 2d06f6ff303f01e_9	fill in the blank 2d06f6ff303f01e_10	fill in the blank 2d06f6ff303f01e_11	fill in the blank 2d06f6ff303f01e_12
Desired ending inventory (oz.)	fill in the blank 2d06f6ff303f01e_13	fill in the blank 2d06f6ff303f01e_14	fill in the blank 2d06f6ff303f01e_15	fill in the blank 2d06f6ff303f01e_16
Total needed	fill in the blank 2d06f6ff303f01e_17	fill in the blank 2d06f6ff303f01e_18	fill in the blank 2d06f6ff303f01e_19	fill in the blank 2d06f6ff303f01e_20
Less: Beginning inventory	fill in the blank 2d06f6ff303f01e_21	fill in the blank 2d06f6ff303f01e_22	fill in the blank 2d06f6ff303f01e_23	fill in the blank 2d06f6ff303f01e_24
DM to be purchased (oz.)	fill in the blank 2d06f6ff303f01e_25	fill in the blank 2d06f6ff303f01e_26	fill in the blank 2d06f6ff303f01e_27	fill in the blank 2d06f6ff303f01e_28
Cost per ounce	$fill in the blank 2d06f6ff303f01e_29	$fill in the blank 2d06f6ff303f01e_30	$fill in the blank 2d06f6ff303f01e_31	$fill in the blank 2d06f6ff303f01e_32
Total purchase cost	$fill in the blank	$fill in the blank	$fill in the blank 2d06f6ff303f01e_35	$fill in the blank 2d06f6ff303f01e_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. 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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