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 90,000 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 DM per unit (yd.) Production needs Desired ending inventory (yd.) Total needed Less: Beginning inventory DM to be purchased (yd.) Cost per yard Total purchase cost $fill in the blank 076a2af60016057_33 $fill in the blank 076a2af60016057_34 $fill in the blank 076a2af60016057_35 $fill in the blank 076a2af60016057_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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter October November December Total Units produced fill in the blank 6c123ffa7018f8d_1 fill in the blank 6c123ffa7018f8d_2 fill in the blank 6c123ffa7018f8d_3 fill in the blank 6c123ffa7018f8d_4 DM per unit (oz.) fill in the blank 6c123ffa7018f8d_5 fill in the blank 6c123ffa7018f8d_6 fill in the blank 6c123ffa7018f8d_7 fill in the blank 6c123ffa7018f8d_8 Production needs fill in the blank 6c123ffa7018f8d_9 fill in the blank 6c123ffa7018f8d_10 fill in the blank 6c123ffa7018f8d_11 fill in the blank 6c123ffa7018f8d_12 Desired ending inventory (oz.) fill in the blank 6c123ffa7018f8d_13 fill in the blank 6c123ffa7018f8d_14 fill in the blank 6c123ffa7018f8d_15 fill in the blank 6c123ffa7018f8d_16 Total needed fill in the blank 6c123ffa7018f8d_17 fill in the blank 6c123ffa7018f8d_18 fill in the blank 6c123ffa7018f8d_19 fill in the blank 6c123ffa7018f8d_20 Less: Beginning inventory fill in the blank 6c123ffa7018f8d_21 fill in the blank 6c123ffa7018f8d_22 fill in the blank 6c123ffa7018f8d_23 fill in the blank 6c123ffa7018f8d_24 DM to be purchased (oz.) fill in the blank 6c123ffa7018f8d_25 fill in the blank 6c123ffa7018f8d_26 fill in the blank 6c123ffa7018f8d_27 fill in the blank 6c123ffa7018f8d_28 Cost per ounce $fill in the blank 6c123ffa7018f8d_29 $fill in the blank 6c123ffa7018f8d_30 $fill in the blank 6c123ffa7018f8d_31 $fill in the blank 6c123ffa7018f8d_32 Total purchase cost $fill in the blank 6c123ffa7018f8d_33 $fill in the blank 6c123ffa7018f8d_34 $fill in the blank 6c123ffa7018f8d_35 $fill in the blank 6c123ffa7018f8d_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 5be3e8fedfea033_1 fill in the blank 5be3e8fedfea033_2 fill in the blank 5be3e8fedfea033_3 fill in the blank 5be3e8fedfea033_4 Direct labor time per unit (hours) fill in the blank 5be3e8fedfea033_5 fill in the blank 5be3e8fedfea033_6 fill in the blank 5be3e8fedfea033_7 fill in the blank 5be3e8fedfea033_8 Direct labor hours needed fill in the blank 5be3e8fedfea033_9 fill in the blank 5be3e8fedfea033_10 fill in the blank 5be3e8fedfea033_11 fill in the blank 5be3e8fedfea033_12 Cost per direct labor hour $fill in the blank 5be3e8fedfea033_13 $fill in the blank 5be3e8fedfea033_14 $fill in the blank 5be3e8fedfea033_15 $fill in the blank 5be3e8fedfea033_16 Total direct labor cost $fill in the blank 5be3e8fedfea033_17 $fill in the blank 5be3e8fedfea033_18 $fill in the blank 5be3e8fedfea033_19

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 90,000 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 DM per unit (yd.) Production needs Desired ending inventory (yd.) Total needed Less: Beginning inventory DM to be purchased (yd.) Cost per yard Total purchase cost $fill in the blank 076a2af60016057_33 $fill in the blank 076a2af60016057_34 $fill in the blank 076a2af60016057_35 $fill in the blank 076a2af60016057_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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter October November December Total Units produced fill in the blank 6c123ffa7018f8d_1 fill in the blank 6c123ffa7018f8d_2 fill in the blank 6c123ffa7018f8d_3 fill in the blank 6c123ffa7018f8d_4 DM per unit (oz.) fill in the blank 6c123ffa7018f8d_5 fill in the blank 6c123ffa7018f8d_6 fill in the blank 6c123ffa7018f8d_7 fill in the blank 6c123ffa7018f8d_8 Production needs fill in the blank 6c123ffa7018f8d_9 fill in the blank 6c123ffa7018f8d_10 fill in the blank 6c123ffa7018f8d_11 fill in the blank 6c123ffa7018f8d_12 Desired ending inventory (oz.) fill in the blank 6c123ffa7018f8d_13 fill in the blank 6c123ffa7018f8d_14 fill in the blank 6c123ffa7018f8d_15 fill in the blank 6c123ffa7018f8d_16 Total needed fill in the blank 6c123ffa7018f8d_17 fill in the blank 6c123ffa7018f8d_18 fill in the blank 6c123ffa7018f8d_19 fill in the blank 6c123ffa7018f8d_20 Less: Beginning inventory fill in the blank 6c123ffa7018f8d_21 fill in the blank 6c123ffa7018f8d_22 fill in the blank 6c123ffa7018f8d_23 fill in the blank 6c123ffa7018f8d_24 DM to be purchased (oz.) fill in the blank 6c123ffa7018f8d_25 fill in the blank 6c123ffa7018f8d_26 fill in the blank 6c123ffa7018f8d_27 fill in the blank 6c123ffa7018f8d_28 Cost per ounce $fill in the blank 6c123ffa7018f8d_29 $fill in the blank 6c123ffa7018f8d_30 $fill in the blank 6c123ffa7018f8d_31 $fill in the blank 6c123ffa7018f8d_32 Total purchase cost $fill in the blank 6c123ffa7018f8d_33 $fill in the blank 6c123ffa7018f8d_34 $fill in the blank 6c123ffa7018f8d_35 $fill in the blank 6c123ffa7018f8d_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 5be3e8fedfea033_1 fill in the blank 5be3e8fedfea033_2 fill in the blank 5be3e8fedfea033_3 fill in the blank 5be3e8fedfea033_4 Direct labor time per unit (hours) fill in the blank 5be3e8fedfea033_5 fill in the blank 5be3e8fedfea033_6 fill in the blank 5be3e8fedfea033_7 fill in the blank 5be3e8fedfea033_8 Direct labor hours needed fill in the blank 5be3e8fedfea033_9 fill in the blank 5be3e8fedfea033_10 fill in the blank 5be3e8fedfea033_11 fill in the blank 5be3e8fedfea033_12 Cost per direct labor hour $fill in the blank 5be3e8fedfea033_13 $fill in the blank 5be3e8fedfea033_14 $fill in the blank 5be3e8fedfea033_15 $fill in the blank 5be3e8fedfea033_16 Total direct labor cost $fill in the blank 5be3e8fedfea033_17 $fill in the blank 5be3e8fedfea033_18 $fill in the blank 5be3e8fedfea033_19

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
DM per unit (yd.)
Production needs
Desired ending inventory (yd.)
Total needed
Less: Beginning inventory
DM to be purchased (yd.)
Cost per yard
Total purchase cost	$fill in the blank 076a2af60016057_33	$fill in the blank 076a2af60016057_34	$fill in the blank 076a2af60016057_35	$fill in the blank 076a2af60016057_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 CompanyDirect Materials Purchases Budget for PolyfiberfillFor the Fourth Quarter

	October	November	December	Total
Units produced	fill in the blank 6c123ffa7018f8d_1	fill in the blank 6c123ffa7018f8d_2	fill in the blank 6c123ffa7018f8d_3	fill in the blank 6c123ffa7018f8d_4
DM per unit (oz.)	fill in the blank 6c123ffa7018f8d_5	fill in the blank 6c123ffa7018f8d_6	fill in the blank 6c123ffa7018f8d_7	fill in the blank 6c123ffa7018f8d_8
Production needs	fill in the blank 6c123ffa7018f8d_9	fill in the blank 6c123ffa7018f8d_10	fill in the blank 6c123ffa7018f8d_11	fill in the blank 6c123ffa7018f8d_12
Desired ending inventory (oz.)	fill in the blank 6c123ffa7018f8d_13	fill in the blank 6c123ffa7018f8d_14	fill in the blank 6c123ffa7018f8d_15	fill in the blank 6c123ffa7018f8d_16
Total needed	fill in the blank 6c123ffa7018f8d_17	fill in the blank 6c123ffa7018f8d_18	fill in the blank 6c123ffa7018f8d_19	fill in the blank 6c123ffa7018f8d_20
Less: Beginning inventory	fill in the blank 6c123ffa7018f8d_21	fill in the blank 6c123ffa7018f8d_22	fill in the blank 6c123ffa7018f8d_23	fill in the blank 6c123ffa7018f8d_24
DM to be purchased (oz.)	fill in the blank 6c123ffa7018f8d_25	fill in the blank 6c123ffa7018f8d_26	fill in the blank 6c123ffa7018f8d_27	fill in the blank 6c123ffa7018f8d_28
Cost per ounce	$fill in the blank 6c123ffa7018f8d_29	$fill in the blank 6c123ffa7018f8d_30	$fill in the blank 6c123ffa7018f8d_31	$fill in the blank 6c123ffa7018f8d_32
Total purchase cost	$fill in the blank 6c123ffa7018f8d_33	$fill in the blank 6c123ffa7018f8d_34	$fill in the blank 6c123ffa7018f8d_35	$fill in the blank 6c123ffa7018f8d_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 5be3e8fedfea033_1	fill in the blank 5be3e8fedfea033_2	fill in the blank 5be3e8fedfea033_3	fill in the blank 5be3e8fedfea033_4
Direct labor time per unit (hours)	fill in the blank 5be3e8fedfea033_5	fill in the blank 5be3e8fedfea033_6	fill in the blank 5be3e8fedfea033_7	fill in the blank 5be3e8fedfea033_8
Direct labor hours needed	fill in the blank 5be3e8fedfea033_9	fill in the blank 5be3e8fedfea033_10	fill in the blank 5be3e8fedfea033_11	fill in the blank 5be3e8fedfea033_12
Cost per direct labor hour	$fill in the blank 5be3e8fedfea033_13	$fill in the blank 5be3e8fedfea033_14	$fill in the blank 5be3e8fedfea033_15	$fill in the blank 5be3e8fedfea033_16
Total direct labor cost	$fill in the blank 5be3e8fedfea033_17	$fill in the blank 5be3e8fedfea033_18	$fill in the blank 5be3e8fedfea033_19

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