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Killingsworth Publishers Inc. budgeted production of 61,000 diaries in 2016. Paper is required to produce a...

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.
$

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Expert Solution

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

ekkarill92 answered 1 year ago
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