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 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 follow Units October 44,000 November 80,000 December 60,000 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.

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 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 follow Units October 44,000 November 80,000 December 60,000 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Marshall Inc. budgeted production of 71,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 65 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 277,000 square yards. The desired December 31, 20Y6, paper inventory is 162,000 square yards. If paper costs $0.17 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar. $
Please help me with show all calculation thanku
Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.50 Variable overhead 0.85 Fixed overhead 1.80 Total unit cost $4.80 For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 390,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.) Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost
Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter. Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores. $15 Sales price per birdfeeder 1.5 Board feet of wood required for each birdfeeder $4 Cost per board foot (actual) 10% Desired ending wood inventory stated as a percentage of next month’s production requirements 20% Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next month’s sales $550,000 Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55% of direct materials purchases are paid in the month after purchase
Alpesh
Seranno Inc. budgeted production of 55,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 104 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 286,000 square yards. The desired December 31, 20Y6, paper inventory is 315,000 square yards. If paper costs $0.16 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar.$
Marshall Inc. budgeted production of 26,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 55 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 100,000 square yards. The desired December 31, 20Y6, paper inventory is 50,000 square yards. If paper costs $0.1 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar. $____________
Two grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $1.60 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Budgeted production, in bottles First 76,000 Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second Third Fourth 106,000 166,000 116,000 The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 30,400 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Mink Caress Direct Materials Budget - Year 2 Second First Quarter Year 3 First 86,000 Third…
Pasadena Candle Inc. budgeted production of 785,000 candles forJanuary. Wax is required to produce a candle. Assume 10 ounces of waxis required for each candle. The estimated January 1 wax inventory is 16,000 pounds. The desired January $1 wax inventory is 12,500 pounds. Ifcandle wax costs $1.24 per pound, determine the direct materialspurchases budget for January.
6. Dauber Inc. budgeted production of 33,000 personal journals in 20Y6. Each journal requires assembly. Assume that four minutes are required to assemble each journal. If assembly labor costs $16.25 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. $______
Four grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a company in western Siberia. The cost of the musk oil is $2.10 per gram. Budgeted quarterly production of Mink Caress is given below for Year 2 and the first quarter of Year 3: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production First 98,000 Total units of raw materials needed Year 2 Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second 128,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Budgeted production, in bottles The inventory of musk oil at the end of a quarter must equal 20% of the following quarter's production needs. A total of 78,400 grams of musk oil will be on hand to start the first quarter of Year 2. Third 188,000 Mink Caress Direct Materials Budget - Year 2 First Fourth 138,000 Second Quarter Year 3 First 108,000 Third…
Direct Labor Cost Budget Hours required for assembly: Pasadena Candle Inc. budgeted production of 45,000 candles for January. Each candle requires molding. Assume that 15 minutes are required to mold each candle. If molding labor costs $12 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Candles Convert minutes to hours Molding hours Hourly rate Total direct labor cost -1. ÷ X $ r=&inprogress=false $ min. min. ✩✩ = ☆ hrs. Previous Next Upda