Teddy Cat Toys manufactures cat toys that resemble mice that are made of cloth and string and stuffed with catnip. Ending inventory of finished goods (completed mice) is budgeted at 15% of the current month's sales; there were no sales in December of the prior year. • Budgeted sales are 150 mice in January, 180 mice in February, and 210 mice in March. • Each toy requires 0.5 feet of gray cloth and 2 inches of string. • Ending materials inventory (of gray fabric and string) are budgeted at 20% of the current month's sales; the previous December there were 100 mice manufactured. • Each foot of gray fabric costs $5.50 and string is sold at $0.25 per inch. Prepare (a) a production budget for Total Sales. and a Direct Materials budget for (b) the gray fabric and the (c) string; include the cost for each budget.
Teddy Cat Toys manufactures cat toys that resemble mice that are made of cloth and string and stuffed with catnip. Ending inventory of finished goods (completed mice) is budgeted at 15% of the current month's sales; there were no sales in December of the prior year. • Budgeted sales are 150 mice in January, 180 mice in February, and 210 mice in March. • Each toy requires 0.5 feet of gray cloth and 2 inches of string. • Ending materials inventory (of gray fabric and string) are budgeted at 20% of the current month's sales; the previous December there were 100 mice manufactured. • Each foot of gray fabric costs $5.50 and string is sold at $0.25 per inch. Prepare (a) a production budget for Total Sales. and a Direct Materials budget for (b) the gray fabric and the (c) string; include the cost for each budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Teddy Cat Toys manufactures cat toys
that resemble mice that are made of
cloth and string and stuffed with
catnip.
Ending inventory of finished goods
(completed mice) is budgeted at
15% of the current month's sales;
there were no sales in December of
the prior year.
• Budgeted sales are 150 mice in
January, 180 mice in February, and
210 mice in March.
• Each toy requires 0.5 feet of gray
cloth and 2 inches of string.
Ending materials inventory (of gray
fabric and string) are budgeted at
20% of the current month's sales;
the previous December there were
100 mice manufactured.
• Each foot of gray fabric costs $5.50
and string is sold at $0.25 per inch.
Prepare (a) a production budget for
Total Sales.
and a Direct Materials budget for (b)
the gray fabric and the (c) string;
include the cost for each budget.
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