Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 22,000 Knox lamps and 7,000 Ayer lamps in 2017. The following data are available for the year 2017.E (Click the icon to view the data.)E (Click the icon to view the December 31, 2017 production budget in units.)Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labour costs budget (label it Schedulefor the year ending December 31, 2017.(a) Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017.Schedule 3A: Direct Material Usage Budget in Quantity and DollarsDatafor the Year Ending December 31, 2017Production budget in unitsMaterialDirect materialsMetalFabricTotalSchedule 2: Production Budget (in Units)Metal3 per kilogram (same as in 2016)Physical Units Budgetfor the Year Ending December 31, 2017Fabric$4 per metre (same as in 2016)Direct materials required for Knox lamps|kgmetresKnoxAyerDirect manufacturing labour$ 23 per hourDirect materials required for Ayer lampskgmetresBudgeted units sales22,2007,000Content of Each Product UnitTotal quantity of direct materials to be usedkgmetres2,4001,400Add target ending finished goods inventoryProductCost BudgetTotal required units24,6008,400KnoxAyerAvailable from beginning direct materials inventory2.6001,400Deduct beginning finished goods inventoryMetal1 kilogram2 kilograms(under a FIFO cost-flow assumption)22,0007,000Units of finished goods to be producedFabric1 metre2 metresMetalDirect manufacturing labour0.05 hour0.1 hourFabricTo be purchased and used this periodDirect MaterialsMetalPrintDoneMetalFabricFabricBeginning inventory15,000 kilograms6,000 metresDirect materials to be used this periodTarget ending inventory13,000 kilograms4,000 metres(b) Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December 31 , 2017.Schedule 3B: Direct Material Purchases Budgetfor the Year Ending December 31, 2017PrintDoneMaterialsMetalFabricTotalPhysical Units Budget

Types of Budget: Sales budget Purchase budget Production budget Cash budget Labor budget…

Magnify Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 22,000 Knox lamps and 7,000 Ayer lamps in 2017. The following data are available for the year 2017. E (Click the icon to view the data.) E (Click the icon to view the December 31, 2017 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A): (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labour costs budget (label it Schedule 4) for the year ending December 31, 2017. (a) Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2017. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars Data - X for the Year Ending December 31, 2017 Production budget in units Material Direct materials Metal Fabric Total Schedule 2: Production Budget (in Units) 3 per kilogram (same as in 2016) $ 4 per metre (same as in 2016) Metal Physical Units Budget for the Year Ending December 31, 2017 Fabric Direct materials required for Knox lamps kg metres Кпох Ayer Direct manufacturing labour $ 23 per hour Direct materials required for Ayer lamps kg metres Budgeted units sales 22,200 7,000 Content of Each Product Unit Total quantity of direct materials to be used kg metres 2,400 1.400 Add target ending finished goods inventory Product Cost Budget Total required units 24,600 8,400 Knox Аyer Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Deduct beginning finished goods inventory 2,600 1,400 1 kilogram 2 kilograms Metal 22,000 7,000 Units of finished goods to be produced Fabric 1 metre 2 metres Metal Fabric Direct manufacturing labour 0.05 hour 0,1 hour To be purchased and used this period Direct Materials Metal Print Done Metal Fabric Fabric Beginning inventory 15,000 kilograms 6,000 metres Direct materials to be used this period Target ending inventory 13,000 kilograms 4,000 metres (b) Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 38) for the year ending December 31, 2017. Schedule 3B: Direct Material Purchases Budget for the Year Ending December 31, 2017 Print Done Materials Metal Fabric Total Physical Units Budget