In: Accounting
Killingsworth Publishers Inc. budgeted production of 61,000 diaries in 2016. Paper is required to produce a diary. Assume 104 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 317,000 square yards. The desired December 31, 2016, paper inventory is 349,000 square yards.
If paper costs $0.14 per square yard, determine the direct
materials purchases budget for 2016. If required, round your final
answer to the nearest dollar.
Dauber Publishers Inc. budgeted production of 66,000 diaries in 2016. Each diary requires assembly. Assume that four minutes are required to assemble each diary.
If assembly labor costs $13.5 per hour, determine the direct
labor cost budget for 2016. Do not round your intermediate
calculations but, if required, round your final answer to the
nearest dollar.
$
Prepare a Direct materials Purchase budget for 2016 | ||||
Killingsworth Publishers Inc. | ||||
Direct Materials Budget | ||||
For 2016 | ||||
2016 | ||||
Budgeted Production (diaries) | 61000 | |||
Materials requirements per diaries | 104 | |||
Materials needed for production square yards | 6344000 | |||
Budgeted ending inventory square yards | 349000 | |||
Totals materials requirements Square yards | 6693000 | |||
Beginning inventory square yards | 317000 | |||
Materials to be purchased square yards | 6376000 | |||
Cost per square yard | 0.14 | |||
Total budgeted direct materials cost | 892640 | |||
Prepare a Direct Labor cost budget for 2016 | ||||
Dauber Publishers Inc. | ||||
Direct Labor Budget | ||||
For 2016 | ||||
2016 | ||||
Expected Production (diaries) | 66000 | |||
direct labor hour per diaries | 0.07 | |||
Total direct labor requirement | 4620 | |||
Direct labor cost per hour | 13.5 | |||
Total budgeted Direct labor cost | 62370 | |||