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Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $14 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $3,100 per month. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of February the company had 11,200 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. March April May 3,500 4,800 5,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases March $ < Required 1 0 0 0 April $ 0 0 0 Required 2 >

Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $14 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $3,100 per month. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of February the company had 11,200 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. March April May 3,500 4,800 5,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases March $ < Required 1 0 0 0 April $ 0 0 0 Required 2 >

FINANCIAL ACCOUNTING
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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Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $14 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $3,100 per month. The company’s policy is to maintain direct materials inventory equal to 40% of the next month’s direct materials requirement. At the end of February, the company had 11,200 pounds of direct materials in inventory. The company's production budget reports the following: | Production Budget | March | April | May | |-------------------|-------|-------|-----| | Units to produce | 3,500 | 4,800 | 5,000 | Tasks: 1. Prepare direct materials budgets for March and April. 2. Prepare direct labor budgets for March and April. 3. Prepare factory overhead budgets for March and April. Instructions: Complete this question by entering your answers in the tabs below. **Required 1: Prepare direct materials budgets for March and April.** **GARDEN YETI - Direct Materials Budget** | | March | April | |----------------------|-------|-------| | Units to produce | | | | Materials needed for production (pounds) | | | | Total materials required (pounds) | 0 | 0 | | Materials to purchase (pounds) | 0 | 0 | | Cost of direct materials purchases | $0 | $0 | Note: The table requires you to calculate and input: - Units to produce for each month. - Materials needed for production based on units to produce. - Total materials required including beginning inventory. - Materials to purchase considering the inventory policy. Proceed to "Required 2" for the next steps in the budgeting process.
Transcribed Image Text:Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $14 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $3,100 per month. The company’s policy is to maintain direct materials inventory equal to 40% of the next month’s direct materials requirement. At the end of February, the company had 11,200 pounds of direct materials in inventory. The company's production budget reports the following: | Production Budget | March | April | May | |-------------------|-------|-------|-----| | Units to produce | 3,500 | 4,800 | 5,000 | Tasks: 1. Prepare direct materials budgets for March and April. 2. Prepare direct labor budgets for March and April. 3. Prepare factory overhead budgets for March and April. Instructions: Complete this question by entering your answers in the tabs below. **Required 1: Prepare direct materials budgets for March and April.** **GARDEN YETI - Direct Materials Budget** | | March | April | |----------------------|-------|-------| | Units to produce | | | | Materials needed for production (pounds) | | | | Total materials required (pounds) | 0 | 0 | | Materials to purchase (pounds) | 0 | 0 | | Cost of direct materials purchases | $0 | $0 | Note: The table requires you to calculate and input: - Units to produce for each month. - Materials needed for production based on units to produce. - Total materials required including beginning inventory. - Materials to purchase considering the inventory policy. Proceed to "Required 2" for the next steps in the budgeting process.
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