Prepare a direct materials purchases budget

Reference no: EM13157251

Ivan's company produced stuffed toy animals; one of these is randy the reindeer. Each reindeer takes 0.10 yard of fabric and three ounces of poly-fiberfill. Fabric costs $3.50 per yard, and poly-fiberfill is $.05 per ounce. Ivan's has budgeted production of stuffed reindeer for the next four months as follows:

Units
October 40,000
November 80,000
December 50,000
January 60,000

Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 15% of the following month's production needs and sufficient poly-fiberfill be in inventory to satisfy 30% of the following month's production needs. Inventory of fabric and poly-fiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each reindeer produced requires (on average) 0.2 direct labor hour. The average cost of direct labor is $10.50 per hour

1. Prepare a direct materials purchases budget of fabric for ht last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.

2. Prepare a direct materials purchases budget of poly-fiberfill for the last quarter in total.

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.

Reference no: EM13157251

Questions Cloud

Strategies to teach children with developmental delays : How does understanding sensory contribution to learning help you develop strategies to teach children with developmental delays?

What is the pressure in millimeters of mercury : What is the pressure in millimeters of mercury of 0.0115 mol of helium gas with a volume of 219 mL at a temperature of 55 circ C?

Compared the 3d structure of a green kinase : Green indicates kinases that phosphorylate tyrosines in a poly(tyrosine-glutamate) substrate; "blue kinases" phosphorylated the same substrate weakly; "yellow kinases" could not phosphorylate this substrate.

What is the price at this output level : What output level will the competitive firm choose in order to maximize its profit? What is the price at this output level?

Prepare a direct materials purchases budget : Prepare a direct materials purchases budget of fabric for ht last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.

Calculate the final temperature : 30.0 mL of water at 24.5 °C was mixed with 40.0 mL of water at 40.0 °C. If the specific heat of water is 4.184 J/g °C and no heat was absorbed by the calorimeter, then the final temperature is _____ °C. (Report to the proper number of significant ..

What would be the price charged in market : Assume the price charged in market 2 was $10, what would be the price charged in market 1?

What is the effective interest rate of an investment : How much is this account worth after 28 years? Submit your answer to the nearest dollar. What is the effective interest rate of an investment if the nominal annual interest rate is 7.77%.

Policy requiring the ending inventories : Company policy requires that ending inventories for each month be 15% of next month's sales. At the beginning of April, the beginning inventory of mats met that policy.

User Account

All Pages