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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

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.

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

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 Company
Direct Materials Purchases Budget for Polyfiberfill
For the Fourth Quarter
October November December
Total
Units produced
DM per unit (oz.)
Production needs
Desired ending inventory (oz.)
Total needed
Less: Beginning inventory
DM to be purchased (oz.)
Cost per ounce
Total purchase cost
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 Company
Direct Labor Budget
For the Fourth Quarter
October November December
Total
Units produced
Direct labor time per unit (hours)
Direct labor hours needed
Cost per direct labor hour
Total direct labor cost

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Solution is totally wrong

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.