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ercise 8.16 sales and Production Budgets and standard. The deluxe for the deluxe models the coming four Company two sales of the two Berring produces Projected sells for slo are given 12.000 91.600 First q Fourth quarter sales are and The president of the company believ the the supervisor has received the that production He found achieved by the company. In to pr I. Company policy dictates that figures standards were in inventory on January for deluxes and 1.300 and 1,17o quarters sales percent of ending inventory should standards. of next sales for uired: quarter and for the year in total. Show sales by product and 1. Prepare a sales for each in total for each time period. 2 What factors might Berring Company have considered in preparing the sales budget? 3. Prepare a separate production budget for each product for each of the first three q the yea Direct Labor Budget the Cow Ea Exercise 8.17 Direct Materials Purchases Budget: of these is Arabeau eight ounces Crescent Company produces stuffed toy animals; one splotches) and fabric with irregular black polyfibertill. Fabric costs $3.50 per yard and polyfiberfill S0.05 per ounce. Crescent budgeted production of Arabeaus for the next four months as follows: Inventory policy requires that sufficient fabric be in ending monthly inventory satis 20 of the following months production needs and sufficient polyfiberfill be in inven satisfy 40 percent of the following months production needs. Inventory of fabric and polyfiberfl 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 S15 per hour. Required: Prepare a direct materials purchases budget of fabric for the last quarter of the year show purchases in units and in dollars for each month and for the quarter in total. 2. Prepare a direct materials purchases bud lyiuerfill for the last quarter of the ycat each month and for the quarter in showing purchases in units and in dniiers 3. Prepare a direct labor budget for uhe las r r of the year showing the hours needed the direct labor cost for each mo h ud
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