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 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 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 $15 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 c6fed006e034fcc_1 fill in the blank c6fed006e034fcc_2 fill in the blank c6fed006e034fcc_3 fill in the blank c6fed006e034fcc_4 DM per unit (yd.) fill in the blank c6fed006e034fcc_5 fill in the blank c6fed006e034fcc_6 fill in the blank c6fed006e034fcc_7 fill in the blank c6fed006e034fcc_8 Production needs fill in the blank c6fed006e034fcc_9 fill in the blank c6fed006e034fcc_10 fill in the blank c6fed006e034fcc_11 fill in the blank c6fed006e034fcc_12 Desired ending inventory (yd.) fill in the blank c6fed006e034fcc_13 fill in the blank c6fed006e034fcc_14 fill in the blank c6fed006e034fcc_15 fill in the blank c6fed006e034fcc_16 Total needed fill in the blank c6fed006e034fcc_17 fill in the blank c6fed006e034fcc_18 fill in the blank c6fed006e034fcc_19 fill in the blank c6fed006e034fcc_20 Less: Beginning inventory fill in the blank c6fed006e034fcc_21 fill in the blank c6fed006e034fcc_22 fill in the blank c6fed006e034fcc_23 fill in the blank c6fed006e034fcc_24 DM to be purchased (yd.) fill in the blank c6fed006e034fcc_25 fill in the blank c6fed006e034fcc_26 fill in the blank c6fed006e034fcc_27 fill in the blank c6fed006e034fcc_28 Cost per yard $fill in the blank c6fed006e034fcc_29 $fill in the blank c6fed006e034fcc_30 $fill in the blank c6fed006e034fcc_31 $fill in the blank c6fed006e034fcc_32 Total purchase cost $fill in the blank c6fed006e034fcc_33 $fill in the blank c6fed006e034fcc_34 $fill in the blank c6fed006e034fcc_35 $fill in the blank c6fed006e034fcc_36
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
7. Question Content Area
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 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 | 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 $15 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.
October | November | December | Total | |
---|---|---|---|---|
Units produced | fill in the blank c6fed006e034fcc_1 | fill in the blank c6fed006e034fcc_2 | fill in the blank c6fed006e034fcc_3 | fill in the blank c6fed006e034fcc_4 |
DM per unit (yd.) | fill in the blank c6fed006e034fcc_5 | fill in the blank c6fed006e034fcc_6 | fill in the blank c6fed006e034fcc_7 | fill in the blank c6fed006e034fcc_8 |
Production needs | fill in the blank c6fed006e034fcc_9 | fill in the blank c6fed006e034fcc_10 | fill in the blank c6fed006e034fcc_11 | fill in the blank c6fed006e034fcc_12 |
Desired ending inventory (yd.) | fill in the blank c6fed006e034fcc_13 | fill in the blank c6fed006e034fcc_14 | fill in the blank c6fed006e034fcc_15 | fill in the blank c6fed006e034fcc_16 |
Total needed | fill in the blank c6fed006e034fcc_17 | fill in the blank c6fed006e034fcc_18 | fill in the blank c6fed006e034fcc_19 | fill in the blank c6fed006e034fcc_20 |
Less: Beginning inventory | fill in the blank c6fed006e034fcc_21 | fill in the blank c6fed006e034fcc_22 | fill in the blank c6fed006e034fcc_23 | fill in the blank c6fed006e034fcc_24 |
DM to be purchased (yd.) | fill in the blank c6fed006e034fcc_25 | fill in the blank c6fed006e034fcc_26 | fill in the blank c6fed006e034fcc_27 | fill in the blank c6fed006e034fcc_28 |
Cost per yard | $fill in the blank c6fed006e034fcc_29 | $fill in the blank c6fed006e034fcc_30 | $fill in the blank c6fed006e034fcc_31 | $fill in the blank c6fed006e034fcc_32 |
Total purchase cost | $fill in the blank c6fed006e034fcc_33 | $fill in the blank c6fed006e034fcc_34 | $fill in the blank c6fed006e034fcc_35 | $fill in the blank c6fed006e034fcc_36 |
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