Macchu Company produces stuffed toy animals; one of these is “Andie the Llama.” Each Andie takes 0.20 yard of fabric (white with irregular black splotches) and 8 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Macchu has budgeted production of Andies for the next four months as follows: Units October 41,000 November 90,000 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 15 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 Andie 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. Macchu CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter October November December Total Units produced DM per unit (yd.) Production needs Desired ending inventory (yd.) Total needed Question Content Area 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. Macchu CompanyDirect Materials Purchases Budget for PolyfiberfillFor 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 Question Content Area 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. Macchu CompanyDirect Labor BudgetFor 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

Macchu Company produces stuffed toy animals; one of these is “Andie the Llama.” Each Andie takes 0.20 yard of fabric (white with irregular black splotches) and 8 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Macchu has budgeted production of Andies for the next four months as follows: Units October 41,000 November 90,000 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 15 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 Andie 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. Macchu CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter October November December Total Units produced DM per unit (yd.) Production needs Desired ending inventory (yd.) Total needed Question Content Area 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. Macchu CompanyDirect Materials Purchases Budget for PolyfiberfillFor 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 Question Content Area 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. Macchu CompanyDirect Labor BudgetFor 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 11E

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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.

Macchu CompanyDirect Materials Purchases Budget for FabricFor the Fourth Quarter

	October	November	December	Total
Units produced
DM per unit (yd.)
Production needs
Desired ending inventory (yd.)
Total needed

Question Content Area

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.

Macchu CompanyDirect Materials Purchases Budget for PolyfiberfillFor 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

Question Content Area

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.

Macchu CompanyDirect Labor BudgetFor 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

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