Jasinski Jewelry produces a component for lapel pins.  Budgeted production in April is 8,400 units.  Each unit requires 1/3 ounce of gold, and 2 hours of direct labor time.  It is estimated that Jasinski will have 100 ounces of gold on hand at April 1, and since management anticipates an increase in the price of gold in the coming months, the desired ending inventory at the end of April is 150 ounces.  The standard cost of an ounce of gold is $300.  The standard rate for direct labor is $25 per hour.  

1)  Prepare a direct materials budget.

2)  Prepare a direct labor budget.

Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.4 direct labor hours at a rate of $14 per hour. Variable manufacturing overhead is charged at a rate of $4 per direct labor hour. Fixed manufacturing overhead is $4,700 per month. The company’s policy is to maintain direct materials inventory equal to 30% of the next month’s materials requirement. At the end of March the company had 5,380 pounds of direct materials in inventory. The company’s production budget reports the following. Production Budget March April May Units to be produced 4,000 5,400 5,700 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April.

The production department of Zan Corporation has submitted thefollowing forecast of units to be produced by quarter for theupcoming fiscal year.

Units to be produced....1st quarter 2nd quarter 3rd quarter 4thquarter
5,000 8,000 7,000 6,000
In addition, the beginning raw materials inventory for the 1stquarter is budgeted to be 6,000 grams and the beginning accountspayable for the 1st quarter is bugeted to be $2,800.
Each unit requires 8 grams of raw material that costs$1.20 pergram. Management desires to end each quarter with an inventory ofraw materials equal to 25% of the following quarter's productionneeds. The desired ending inventory for the 4th quarter is 8,000grams. Management plans to pay for 60% of raw material purchases inthe quarter acquired and 40% in the following quarter. Each unitrequires 0.20 direct labor-hours and direct laborers are paid$11.50 per hour.

1. Prepare the company's direct materials budget and schedule ofexpected cash disbursements for purchases of materials for theupcoming fiscal.

2. Prepare the company's direct labor budget for the upcomingfiscal year, assuming that the direct labor workforce is adjustedeach quarter to match the number of hours requirec to produce theforecased number of units produced.

O’Reilly Outfitters Inc. has forecasted sales of 32,000 tents for the upcoming year. The anticipated finished goods inventory at January 1 is 5,000 units, but management desires this inventory level to be reduced by 20% on December 31.

Two materials are used in the production of tents: 36 square yards of nylon having a standard cost of $2.00 per yard, and 20 feet of metal tubing having a standard cost of $.50 per linear foot. Raw material inventory information is as follows:

(1) Prepare a production budget for the upcoming year.

(2) Prepare a direct materials budget for the upcoming year.