Direct Materials Purchases Budget: Direct Labor Budget
Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus 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 40 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour.
Required:
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Fabric | ||||
| For the Fourth Quarter | ||||
| October | November | December | Total | |
| Units produced | ||||
| DM per unit (yd.) | ||||
| Production needs | ||||
| Desired ending inventory (yd.) | ||||
| Total needed | ||||
| Less: Beginning inventory | ||||
| DM to be purchased (yd.) | ||||
| Cost per yard | $ | $ | $ | $ |
| Total purchase cost | $ | $ | $ | $ |
Feedback
The purchases amount can be determined by considering beginning and ending (desired) inventory amounts. Also, consider expected usage.
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Polyfiberfill | ||||
| For 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 | $ | $ | $ | $ |
Feedback
See Cornerstone 8.3
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.
| Crescent Company | ||||
| Direct Labor Budget | ||||
| For 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 | $ | $ | $ | $ |
In: Accounting
Direct Materials Purchases Budget: Direct Labor Budget
Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau 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. Crescent has budgeted production of Arabeaus for the next four months as follows:
| Units | |
| October | 44,000 |
| November | 80,000 |
| 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 40 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $16 per hour.
Required:
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Fabric | ||||
| For the Fourth Quarter | ||||
| October | November | December | Total | |
| Units produced | ||||
| DM per unit (yd.) | ||||
| Production needs | ||||
| Desired ending inventory (yd.) | ||||
| Total needed | ||||
| Less: Beginning inventory | ||||
| DM to be purchased (yd.) | ||||
| Cost per yard | $ | $ | $ | $ |
| Total purchase cost | $ | $ | $ | $ |
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Polyfiberfill | ||||
| For 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 | $ | $ | $ | $ |
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.
| Crescent Company | ||||
| Direct Labor Budget | ||||
| For 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 | $ | $ | $ | $ |
In: Accounting
Direct Materials Purchases Budget: Direct Labor Budget Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and eight ounces of polyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows: Units October 42,000 November 90,000 December 50,000 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 40 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour. Required: 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. Crescent Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter October November December Total Units produced DM per unit (yd.) Production needs Desired ending inventory (yd.) Total needed Less: Beginning inventory DM to be purchased (yd.) Cost per yard $ $ $ $ Total purchase cost $ $ $ $ 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. Crescent Company Direct Materials Purchases Budget for Polyfiberfill For 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 $ $ $ $ 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. Crescent Company Direct Labor Budget For 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 $ $ $ $
In: Accounting
Direct Materials Purchases Budget: Direct Labor Budget
Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:
| Units | |
| October | 44,000 |
| November | 80,000 |
| December | 50,000 |
| 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 40 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 Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $16 per hour.
Required:
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Fabric | ||||
| For the Fourth Quarter | ||||
| October | November | December | Total | |
| Units produced | ? | ? | ? | ? |
| DM per unit (yd.) | ? | ? | ? | ? |
| Production needs | ? | ? | ? | ? |
| Desired ending inventory (yd.) | ? | ? | ? | ? |
| Total needed | ? | ? | ? | ? |
| Less: Beginning inventory | ? | ? | ? | ? |
| DM to be purchased (yd.) | ? | ? | ? | ? |
| Cost per yard | $ | $ | $ | $ |
| Total purchase cost | $ | $ | $ | $ |
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.
| Crescent Company | ||||
| Direct Materials Purchases Budget for Polyfiberfill | ||||
| For 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 | $ | $ | $ | $ |
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.
| Crescent Company | ||||
| Direct Labor Budget | ||||
| For 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 | $ | $ | $ | $ |
In: Accounting
The beginning inventory at Midnight Supplies and data on purchases and sales for a three month period ending March 31 are as follows:
|
Date |
Transaction |
Number of Units |
Per Unit |
Total |
|
| Jan. | 1 | Inventory | 2,500 | $52.00 | $130,000 |
| 10 | Purchase | 7,800 | 60.00 | 468,000 | |
| 28 | Sale | 3,750 | 104.00 | 390,000 | |
| 30 | Sale | 1,200 | 104.00 | 124,800 | |
| Feb. | 5 | Sale | 500 | 104.00 | 52,000 |
| 10 | Purchase | 17,500 | 62.00 | 1,085,000 | |
| 16 | Sale | 8,600 | 109.00 | 937,400 | |
| 28 | Sale | 8,900 | 109.00 | 970,100 | |
| Mar. | 5 | Purchase | 14,200 | 63.60 | 903,120 |
| 14 | Sale | 10,200 | 109.00 | 1,111,800 | |
| 25 | Purchase | 3,400 | 64.00 | 217,600 | |
| You are in Column Date | You are in Column Date30 | You are in Column TransactionSale | You are in Column Number of Units7,900 | You are in Column Per Unit109.00 | You are in Column Total861,100 |
| Instructions | |
| 1. | Record the inventory, purchases, and cost of goods sold data in
a perpetual inventory record similar to the one illustrated in
Exhibit 3 , using the first-in, first-out method. |
| 2. | Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. |
| 3. | Determine the gross profit from sales for the period. |
| 4. | Determine the ending inventory cost as of March 31. |
| 5. | Based upon the preceding data, would you expect the ending
inventory using the last-in, first-out method
A method of inventory costing based on the assumption that the most recent inventory costs should be charged against revenue. to be higher or lower? |
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Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midnight Supplies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FIFO
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in
Exhibit 3
, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
| Date | Purchases | Cost of Goods Sold | Inventory | ||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Jan. 1 | |||||||||
| 10 | |||||||||
| 10 | |||||||||
| 28 | |||||||||
| 28 | |||||||||
| 30 | |||||||||
| Feb. 5 | |||||||||
| 10 | |||||||||
| 10 | |||||||||
| 16 | |||||||||
| 16 | |||||||||
| 28 | |||||||||
| Mar. 5 | |||||||||
| 5 | |||||||||
| 14 | |||||||||
| 14 | |||||||||
| 25 | |||||||||
| 25 | |||||||||
| 30 | |||||||||
| 30 | |||||||||
| You are in Column Date Date31 | You are in Column Purchases QuantityBalances | You are in Column Purchases Unit Cost | You are in Column Purchases Total Cost | You are in Column Cost of Goods Sold Quantity | You are in Column Cost of Goods Sold Unit Cost | You are in Column Cost of Goods Sold Total Cost | You are in Column Inventory Quantity | You are in Column Inventory Unit Cost | You are in Column Inventory Total Cost |
Points:
0 / 95
Feedback
Check My Work
none
X
Journal
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles.
In: Accounting
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In: Accounting
1. A living room is 15 ft x 19 ft. The walls of the room are 8.5 ft tall.
Calculate the total area of the West wall?
How many rolls of wallpaper will you need to cover the wall. One roll will cover 44 square feet
What will be the cost of the wallpaper? ($14.99 for a pack of 2 rolls)
2. Calculate the following for the remaining walls
Calculate the total area of the North Wall. (Note: You are not painting the Kitchen door.) Kitchen door is 3.5 ft wide by 7 ft tall
Calculate the total area of the East Wall.
Calculate the total area of the South Wall. (Note: You are not painting the Front Door or the Window.) Front door is 3.5 ft wide by 7 ft tall and the window is 8 ft by 4 ft tall
Calculate the total area of the North, East, and South Walls combined.
How many cans of paint do you need? Why? (Remember, you are doing a double coating.) one can of paint will cover 400 square feet and is $17.99 per can
Calculate the total cost of paint.
3.When looking at your dingy carpet, you noticed the dirt trail leading from the Front Door to the Kitchen Door. In order to negate this problem you decided to create a 4 ft laminate tile walkway from the Front Door to the Kitchen Door. Then the rest of the room would be re-carpeted.
Calculate the following for the new walkway.
What are the dimensions of the new walkway?
Calculate the total area of the new walkway.
Calculate how many boxes of laminate tiles you need. Laminate tiles one box will cover 12 square feet and is $24.99 per sq yd
Calculate the total cost of creating the new walkway.
4. Calculate the following for the recarpeted area.
What is the dimension of the area that will be recarpeted?
Calculate the total area that will be recarpeted in sq ft.
Calculate the total area that will be recarpeted in sq yd.
Calculate the total cost of the recarpeted area.Carpet is sold by the square yard and is $29.99 per sq yd
4. Calculate the total cost of the recarpeted floor and making a new walkway.
5.Next, it is time to fix the ceiling. After all the other work you have done, you decided it was best to keep the ceiling uniform with a single type of tile.
Calculate the total area of the ceiling.
Calculate the total amount of boxes of ceiling tiles you need. One box of tile will cover 20 square ft and it is $19.99 per box
Calculate the total cost of the ceiling tiles.
6. Finally, you are finished! All that is left is to calculate how much money you spent on your wonderful renovations.
What was the total cost of fixing the entire living room? Give an itemized list.
In: Math
The following are components of what type of inventory cost: finance charges, warehousing, and shelf space, handling equipment, bookkeeping, insurance, taxes or spoilage?
a. Total cost
b. Ordering cost
c. Holding cost
d. Maintenance cost
In: Operations Management
The cost of producing 5-gallon water bottles is given by
C(q) =0.005q2 +2q + 1000. If 2000 5-galllon water bottles are produced, find the
In: Economics
Activity-Based Costing
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:
| Activity | Activity Cost | Activity Base | |
| Production setup | $ 56,250 | Number of setups | |
| Procurement | 147,000 | Number of purchase orders (PO) | |
| Quality control | 168,000 | Number of inspections | |
| Materials management | 82,000 | Number of components | |
| Total | $453,250 | ||
The activity-base usage quantities for each product are as follows:
| Setups | Purchase Orders |
Inspections | Components | Unit Volume | ||||||
| Custom | 300 | 1,200 | 2,400 | 250 | 2,000 | |||||
| Standard | 150 | 200 | 400 | 150 | 2,000 | |||||
| Total | 450 | 1,400 | 2,800 | 400 | 4,000 | |||||
a. Determine an activity rate for each activity.
| Activity Rates | Production Setup | Procurement | Quality Control | Materials Management | ||||
| Activity cost | $ | $ | $ | $ | ||||
| ÷ Activity base | ||||||||
| Activity rate | $ | /setup | $ | /PO | $ | /inspection | $ | /component |
b. Assign activity costs to each product and determine the unit activity cost, using the activity rates from part (a). Round unit costs to the nearest cent.
| Custom | Standard | |||
| Setups Total | $ | $ | ||
| Purchase Orders Total | ||||
| Inspections Total | ||||
| Components Total | ||||
| Total product cost | $ | $ | ||
| Unit volume | ||||
| Unit cost | $ | $ | ||
c. Assume that each product required one direct
labor hour per unit. Determine the per-unit cost if factory
overhead is allocated on the basis of direct labor hours. Round
your answer to the nearest cent.
$per unit
d. The custom product will consume materials management activities than will the standard product.
In: Accounting