Module+7000+VI+Homework

VI. Module 7000 Homework jcb

Exercise 8.2 Production Budget (EO8:2 Page 398)
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  |||||||| Production Budget for Training Balls ||   ||   ||   ||   ||
 * ||  || January || February || March ||   ||   ||   ||   ||   ||
 * Unit Sales ||  || 70,000 || 65,000 || 100,000 ||   ||   ||   ||   ||   ||
 * Desired Ending Inventory ||  || __13,000__ || __20,000__ || __24,000__ ||   ||   ||   ||   ||   ||
 * Total Needed ||  || 83,000 || 85,000 || 124,000 ||   ||   ||   ||   ||   ||
 * Less: Beginning Inventory ||  || __10,000__ || __13,000__ || __20,000__ ||   ||   ||   ||   ||   ||
 * Units Produced ||  || **__73,000__** || **__72,000__** || **__104,000__** ||   ||   ||   ||   ||   ||
 * ||  |||||||| Production Budget for Match Balls ||   ||   ||   ||   ||
 * ||  || January || February || March ||   ||   ||   ||   ||   ||
 * Unit Sales ||  || 10,000 || 8,000 || 15,000 ||   ||   ||   ||   ||   ||
 * Desired Ending Inventory ||  || __1,600__ || __3,000__ || __5,000__ ||   ||   ||   ||   ||   ||
 * Total Needed ||  || 11,600 || 11,000 || 20,000 ||   ||   ||   ||   ||   ||
 * Less: Beginning Inventory ||  || __1,500__ || __1,600__ || __3,000__ ||   ||   ||   ||   ||   ||
 * Units Produced ||  || **10,100** || **9,400** || **17,000** ||   ||   ||   ||   ||   ||
 * 2.You need Unit Sales for May to be able to calculate ending inventory. ||  ||   ||   ||   ||   ||
 * Exercise 8.3 Direct Materials Purchases Budget (EO8:3 Page 398) ||  ||   ||   ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  |||||||||| Direct Materials Purchases Budget for Practice Balls ||   ||   ||   ||
 * Polyvinyl Chloride Panels ||  || January || February ||   ||   ||   ||   ||   ||   ||
 * Units Produced ||  || 73,000 || 72,000 ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x .7__ || __x .7__ ||   ||   ||   ||   ||   ||   ||
 * Production Needs ||  || 51,100 || 50,400 ||   ||   ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __5,040__ || __7,280__ ||   ||   ||   ||   ||   ||   ||
 * Total needed ||  || 56,140 || 57,680 ||   ||   ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __5,110__ || __5,040__ ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **__51,030__** || **__52,640__** ||   ||   ||   ||   ||   ||   ||
 * *Desired Ending Inventory: January = .10 x Feb production needs = .10 x 50,400 = **__5,040__** ||  ||   ||   ||   ||
 * Desired Ending Inventory: February = .10 x March production needs = .10 x (104,000 x .7) = **__7,280__** ||  ||   ||   ||
 * Beginning Inventory:January=End of year for December=January Production Needs x .10= ||  ||   ||   ||
 * 51,100 x .10 = __**5,110**__ ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Bladder with Valve ||  || January || February ||   ||   ||   ||   ||   ||   ||
 * Units Produced ||  || 73,000 || 72,000 ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x 1__ || __x 1__ ||   ||   ||   ||   ||   ||   ||
 * Production Needs ||  || 73,000 || 72,000 ||   ||   ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __7,200__ || __10,400__ ||   ||   ||   ||   ||   ||   ||
 * Total needed ||  || 80,200 || 82,400 ||   ||   ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __7,300__ || __7,200__ ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **__72,900__** || **__75,200__** ||   ||   ||   ||   ||   ||   ||
 * *Desired Ending Inventory: January = .10 x Feb production needs = .10 x 72,000 = **__7,200__** ||  ||   ||   ||   ||
 * Desired Ending Inventory: February = .10 x March production needs = .10 x (104,000 x 1) = **__10,400__** ||  ||   ||   ||
 * Beginning Inventory:January=End of year for December=January Production Needs x .10 = ||  ||   ||   ||
 * 73,000 x .10 = __**7,300**__ ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Glue ||  || January || February ||   ||   ||   ||   ||   ||   ||
 * Units Produced ||  || 73,000 || 72,000 ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x 3__ || __x 3__ ||   ||   ||   ||   ||   ||   ||
 * Production Needs ||  || 219,000 || 216,000 ||   ||   ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __21,600__ || __31,200__ ||   ||   ||   ||   ||   ||   ||
 * Total needed ||  || 240,600 || 247,200 ||   ||   ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __21,900__ || __21,600__ ||   ||   ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **__218,700__** || **__225,600__** ||   ||   ||   ||   ||   ||   ||
 * *Desired Ending Inventory: January = .10 x Feb production needs = .10 x 216,000 = **__21,600__** ||  ||   ||   ||
 * Desired Ending Inventory: February = .10 x March production needs = .10 x (104,000 x 3) = **__31,200__** ||  ||   ||   ||
 * Beginning Inventory:January=End of year for December=January Production Needs x .10 = ||  ||   ||   ||
 * 219,000 x .10 = **__21,900__** ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * 2. If StrikeSmart increased ending inventory to 20% of next month’s needs, ending inventory would increase, increasing ||  ||
 * Total materials needed and causing an increase in direct materials purchased. StrikeSmart would need more ordered to account for ||
 * the increase in ending inventory. ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Exercise 8.10 Budgeted Income Statement (EO8:10 Page 401) ||  ||   ||   ||   ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||||| Coral Seas Jewelry Company ||   ||   ||   ||   ||
 * ||  ||   |||||| Budgeted Income Statement ||   ||   ||   ||   ||
 * ||  ||   |||||||| For the Year Ended December 31, 20 ||   ||   ||   ||
 * Sales ||  ||   ||   ||   ||   ||   ||   || $15,900,000 ||   ||
 * Less: Cost of Goods Sold ||  ||   ||   ||   ||   ||   ||   || __8,750,000__ ||   ||
 * Gross Margin ||  ||   ||   ||   ||   ||   ||   || 7,150,000 ||   ||
 * Less: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Marketing Expense ||  ||   ||   ||   || $2,800,000 ||   ||   ||   ||   ||
 * Administrative Expense ||  ||   ||   ||   || __675,000__ ||   ||   || __$3,475,000__ ||   ||
 * Operating Income ||  ||   ||   ||   ||   ||   ||   || 3,675,000 ||   ||
 * Less: Interest Expense ||  ||   ||   ||   ||   ||   ||   || 0 ||   ||
 * Income Before taxes ||  ||   ||   ||   ||   ||   ||   || 3,675,000 ||   ||
 * Less: Income Taxes (.40 x $3,675,000) ||  ||   ||   ||   ||   ||   || __1,470,000__ ||   ||
 * Net Income ||  ||   ||   ||   ||   ||   ||   || __**$2,205,000**__ ||   ||
 * 2.If Coral Seas Jewelry Company had interest payments of $500,000, Income before taxes would decrease by $500,000 ||  ||
 * to $3,175,000. Income taxes would decrease to $1,270,000, resulting in a decrease in net income to $1,905,000 ($300,000 decrease). ||
 * Exercise 8.13 Flexible Budget for Varying Levels (EO8:13 Page 402) ||  ||   ||   ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  |||| Variable Cost ||   |||||| Range of Production in Units ||   ||   ||
 * ||  |||| Per Unit ||   || 210,000 || 220,000 || 230,000 ||   ||   ||
 * Variable: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Direct Materials ||  || $3.40 ||   ||   || $714,000 || $748,000 || $782,000 ||   ||   ||
 * Direct Labor ||  || 1.3 ||   ||   || 273,000 || 286,000 || 299,000 ||   ||   ||
 * Variable Overhead ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Supplies ||  || 0.23 ||   ||   || 48,300 || 50,600 || 52,900 ||   ||   ||
 * Maintenance ||  || 0.19 ||   ||   || 39,900 || 41,800 || 43,700 ||   ||   ||
 * Power ||  || __0.18__ ||   ||   || __37,800__ || __39,600__ || __41,400__ ||   ||   ||
 * Total Variable Costs ||  || __**$5.30**__ ||   ||   || $1,113,000 || $1,166,000 || $1,219,000 ||   ||   ||
 * Fixed Overhead: ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Supervision ||  ||   ||   ||   || $110,000 || $110,000 || $110,000 ||   ||   ||
 * Depreciation ||  ||   ||   ||   || 135,000 || 135,000 || 135,000 ||   ||   ||
 * Other Overhead ||  ||   ||   ||   || __245,000__ || __245,000__ || __245,000__ ||   ||   ||
 * Total Fixed Costs ||  ||   ||   ||   || __$490,000__ || __$490,000__ || __$490,000__ ||   ||   ||
 * Total Production costs ||  ||   ||   ||   || __**$1,603,000**__ || __**$1,656,000**__ || __**$1,709,000**__ ||   ||   ||
 * 2. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Per-unit product cost @ 210,000 units = Total Production Costs/Production Units= ||  ||   ||   ||   ||
 * $1,603,000/210,000 = __**$7.63**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Per-unit product cost @ 220,000 units ||  ||   ||   ||   ||   ||   ||   ||   ||
 * $1,656,000/220,000 = __**$7.53**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Per-unit product cost @ 230,000 units ||  ||   ||   ||   ||   ||   ||   ||   ||
 * $1,709,000/230,000 = __**$7.43**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * 3. If the cost of maintenance went up to .22, the per unit cost would increase by $.03. ||  ||   ||   ||   ||
 * Exercise 8.15 Production Budget (EO8:15 Page 403) ||  ||   ||   ||   ||   ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Shippen Company ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Production Budget ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * For the Third Quarter ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  || July || August || September || Total ||   ||   ||   ||   ||
 * Unit Sales ||  || 23,400 || 35,600 || 34,000 || 93,000 ||   ||   ||   ||   ||
 * Desired Ending Inventory ||  || __7,120__ || __6,800__ || __5,600__ || __5,600__ ||   ||   ||   ||   ||
 * Total Needed ||  || 30,520 || 42,400 || 39,600 || 98,600 ||   ||   ||   ||   ||
 * Less: Beginning Inventory* ||  || __4,680__ || __7,120__ || __6,800__ || __4,680__ ||   ||   ||   ||   ||
 * Units Produced ||  || __**25,840**__ || __**35,280**__ || __**32,800**__ || __**93,920**__ ||   ||   ||   ||   ||
 * *Desired Ending Inventory for July = 23,400 x .20 = __**4,680**__ ||  ||   ||   ||   ||   ||   ||
 * Exercise 8.17 Direct Materials Purchases Budget, Direct Labor Budget (EO8:17 Page 403) ||  ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||||||| Direct Materials Purchases Budget for Fabric ||   ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x .25__ || __x .25__ || __x .25__ || __x .25__ ||   ||   ||   ||   ||
 * Production Needs ||  || 10,500 || 22,500 || 12,500 || 45,500 ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __4,500__ || __2,500__ || __2,000__ || __2,000__ ||   ||   ||   ||   ||
 * Total needed ||  || 15,000 || 25,000 || 14,500 || 47,500 ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __2,100__ || __4,500__ || __2,500__ || __2,100__ ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **12,900** || **20,500** || **12,000** || **45,400** ||   ||   ||   ||   ||
 * Cost per Yard ||  || __x $3.50__ || __x $3.50__ || __x $3.50__ |||| __x $3.50__ ||   ||   ||   ||
 * Total Purchase Cost ||  || **__$45,150__** || **__$71,750__** || **__$42,000__** || **__$158,900__** ||   ||   ||   ||   ||
 * *Desired Ending Inventory: October = .20 x November production needs = .20 x 22,500 ||  ||   ||   ||   ||
 * Desired Ending Inventory: November = .20 x December production needs = .20 x 12,500 ||  ||   ||   ||
 * Desired Ending Inventory: December = .20 x January production needs (40,000 x .25) = .20 x 10,000 ||  ||   ||   ||
 * Beginning Inventory:October=October Production Needs x .20 = 10,500 x .20 = __**2,100**__ ||  ||   ||   ||   ||
 * 2. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||||||||| Direct Materials Purchases Budget for Polyfiberfill ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x 8__ || __x 8__ || __x 8__ || __x 8__ ||   ||   ||   ||   ||
 * Production Needs ||  || 336,000 || 720,000 || 400,000 || 1,456,000 ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __288,000__ || __160,000__ || __128,000__ || __128,000__ ||   ||   ||   ||   ||
 * Total needed ||  || 624,000 || 880,000 || 528,000 || 1,584,000 ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __134,400__ || __288,000__ || __160,000__ || __134,400__ ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **489,600** || **592,000** || **368,000** || **1,449,600** ||   ||   ||   ||   ||
 * Cost per Ounce ||  || x __$.05__ || __x $.05__ || __x $.05__ || __x $.05__ ||   ||   ||   ||   ||
 * Total Purchase Cost ||  || **__$24,480__** || **__$29,600__** || **__$18,400__** || **__$72,480__** ||   ||   ||   ||   ||
 * *Desired Ending Inventory: October = .40 x November production needs = .40 x 720,000 ||  ||   ||   ||
 * Desired Ending Inventory: November = .40 x December production needs = .40 x 400,000 ||  ||   ||   ||
 * Desired Ending Inventory: December = .40 x January production needs (40,000 x 8) = .40 x 320,000 ||  ||   ||   ||
 * Beginning Inventory:October=October Production Needs x .40 = 336,000 x .40 = __**134,400**__ ||  ||   ||   ||
 * 3. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||| Direct Labor Budget ||   ||   ||   ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Labor per unit ||  || __x .35__ || __x .35__ || __x .35__ || __x .35__ ||   ||   ||   ||   ||
 * Direct Labor Hours needed ||  || 14,700 || 31,500 || 17,500 || 63,700 ||   ||   ||   ||   ||
 * Cost per Direct Labor Hour ||  || __x $14__ || __x $14__ || __x $14__ || __x $14__ ||   ||   ||   ||   ||
 * Total Direct Labor Cost ||  || __**$205,800**__ || __**$441,000**__ || __**$245,000**__ || __**$891,800**____ ||   ||   ||   ||   ||
 * Per-unit product cost @ 210,000 units = Total Production Costs/Production Units= ||  ||   ||   ||   ||
 * $1,603,000/210,000 = __**$7.63**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Per-unit product cost @ 220,000 units ||  ||   ||   ||   ||   ||   ||   ||   ||
 * $1,656,000/220,000 = __**$7.53**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * Per-unit product cost @ 230,000 units ||  ||   ||   ||   ||   ||   ||   ||   ||
 * $1,709,000/230,000 = __**$7.43**__ ||  ||   ||   ||   ||   ||   ||   ||   ||
 * 3. If the cost of maintenance went up to .22, the per unit cost would increase by $.03. ||  ||   ||   ||   ||
 * Exercise 8.15 Production Budget (EO8:15 Page 403) ||  ||   ||   ||   ||   ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Shippen Company ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * Production Budget ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * For the Third Quarter ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  || July || August || September || Total ||   ||   ||   ||   ||
 * Unit Sales ||  || 23,400 || 35,600 || 34,000 || 93,000 ||   ||   ||   ||   ||
 * Desired Ending Inventory ||  || __7,120__ || __6,800__ || __5,600__ || __5,600__ ||   ||   ||   ||   ||
 * Total Needed ||  || 30,520 || 42,400 || 39,600 || 98,600 ||   ||   ||   ||   ||
 * Less: Beginning Inventory* ||  || __4,680__ || __7,120__ || __6,800__ || __4,680__ ||   ||   ||   ||   ||
 * Units Produced ||  || __**25,840**__ || __**35,280**__ || __**32,800**__ || __**93,920**__ ||   ||   ||   ||   ||
 * *Desired Ending Inventory for July = 23,400 x .20 = __**4,680**__ ||  ||   ||   ||   ||   ||   ||
 * Exercise 8.17 Direct Materials Purchases Budget, Direct Labor Budget (EO8:17 Page 403) ||  ||   ||   ||
 * 1. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||||||| Direct Materials Purchases Budget for Fabric ||   ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x .25__ || __x .25__ || __x .25__ || __x .25__ ||   ||   ||   ||   ||
 * Production Needs ||  || 10,500 || 22,500 || 12,500 || 45,500 ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __4,500__ || __2,500__ || __2,000__ || __2,000__ ||   ||   ||   ||   ||
 * Total needed ||  || 15,000 || 25,000 || 14,500 || 47,500 ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __2,100__ || __4,500__ || __2,500__ || __2,100__ ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **12,900** || **20,500** || **12,000** || **45,400** ||   ||   ||   ||   ||
 * Cost per Yard ||  || __x $3.50__ || __x $3.50__ || __x $3.50__ |||| __x $3.50__ ||   ||   ||   ||
 * Total Purchase Cost ||  || **__$45,150__** || **__$71,750__** || **__$42,000__** || **__$158,900__** ||   ||   ||   ||   ||
 * *Desired Ending Inventory: October = .20 x November production needs = .20 x 22,500 ||  ||   ||   ||   ||
 * Desired Ending Inventory: November = .20 x December production needs = .20 x 12,500 ||  ||   ||   ||
 * Desired Ending Inventory: December = .20 x January production needs (40,000 x .25) = .20 x 10,000 ||  ||   ||   ||
 * Beginning Inventory:October=October Production Needs x .20 = 10,500 x .20 = __**2,100**__ ||  ||   ||   ||   ||
 * 2. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||||||||| Direct Materials Purchases Budget for Polyfiberfill ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x 8__ || __x 8__ || __x 8__ || __x 8__ ||   ||   ||   ||   ||
 * Production Needs ||  || 336,000 || 720,000 || 400,000 || 1,456,000 ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __288,000__ || __160,000__ || __128,000__ || __128,000__ ||   ||   ||   ||   ||
 * Total needed ||  || 624,000 || 880,000 || 528,000 || 1,584,000 ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __134,400__ || __288,000__ || __160,000__ || __134,400__ ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **489,600** || **592,000** || **368,000** || **1,449,600** ||   ||   ||   ||   ||
 * Cost per Ounce ||  || x __$.05__ || __x $.05__ || __x $.05__ || __x $.05__ ||   ||   ||   ||   ||
 * Total Purchase Cost ||  || **__$24,480__** || **__$29,600__** || **__$18,400__** || **__$72,480__** ||   ||   ||   ||   ||
 * *Desired Ending Inventory: October = .40 x November production needs = .40 x 720,000 ||  ||   ||   ||
 * Desired Ending Inventory: November = .40 x December production needs = .40 x 400,000 ||  ||   ||   ||
 * Desired Ending Inventory: December = .40 x January production needs (40,000 x 8) = .40 x 320,000 ||  ||   ||   ||
 * Beginning Inventory:October=October Production Needs x .40 = 336,000 x .40 = __**134,400**__ ||  ||   ||   ||
 * 3. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||| Direct Labor Budget ||   ||   ||   ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Labor per unit ||  || __x .35__ || __x .35__ || __x .35__ || __x .35__ ||   ||   ||   ||   ||
 * Direct Labor Hours needed ||  || 14,700 || 31,500 || 17,500 || 63,700 ||   ||   ||   ||   ||
 * Cost per Direct Labor Hour ||  || __x $14__ || __x $14__ || __x $14__ || __x $14__ ||   ||   ||   ||   ||
 * Total Direct Labor Cost ||  || __**$205,800**__ || __**$441,000**__ || __**$245,000**__ || __**$891,800**____ ||   ||   ||   ||   ||
 * 2. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||||||||| Direct Materials Purchases Budget for Polyfiberfill ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Materials Per Unit ||  || __x 8__ || __x 8__ || __x 8__ || __x 8__ ||   ||   ||   ||   ||
 * Production Needs ||  || 336,000 || 720,000 || 400,000 || 1,456,000 ||   ||   ||   ||   ||
 * Desired ending inventory* ||  || __288,000__ || __160,000__ || __128,000__ || __128,000__ ||   ||   ||   ||   ||
 * Total needed ||  || 624,000 || 880,000 || 528,000 || 1,584,000 ||   ||   ||   ||   ||
 * Less: Beginning inventory ||  || __134,400__ || __288,000__ || __160,000__ || __134,400__ ||   ||   ||   ||   ||
 * Direct Materials Purchased ||  || **489,600** || **592,000** || **368,000** || **1,449,600** ||   ||   ||   ||   ||
 * Cost per Ounce ||  || x __$.05__ || __x $.05__ || __x $.05__ || __x $.05__ ||   ||   ||   ||   ||
 * Total Purchase Cost ||  || **__$24,480__** || **__$29,600__** || **__$18,400__** || **__$72,480__** ||   ||   ||   ||   ||
 * *Desired Ending Inventory: October = .40 x November production needs = .40 x 720,000 ||  ||   ||   ||
 * Desired Ending Inventory: November = .40 x December production needs = .40 x 400,000 ||  ||   ||   ||
 * Desired Ending Inventory: December = .40 x January production needs (40,000 x 8) = .40 x 320,000 ||  ||   ||   ||
 * Beginning Inventory:October=October Production Needs x .40 = 336,000 x .40 = __**134,400**__ ||  ||   ||   ||
 * 3. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   |||| GPB Company ||   ||   ||   ||   ||   ||
 * ||  ||   |||| Direct Labor Budget ||   ||   ||   ||   ||   ||
 * ||  ||   |||||| For the Fourth Quarter ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Labor per unit ||  || __x .35__ || __x .35__ || __x .35__ || __x .35__ ||   ||   ||   ||   ||
 * Direct Labor Hours needed ||  || 14,700 || 31,500 || 17,500 || 63,700 ||   ||   ||   ||   ||
 * Cost per Direct Labor Hour ||  || __x $14__ || __x $14__ || __x $14__ || __x $14__ ||   ||   ||   ||   ||
 * Total Direct Labor Cost ||  || __**$205,800**__ || __**$441,000**__ || __**$245,000**__ || __**$891,800**____ ||   ||   ||   ||   ||
 * ||  || October || November || December || Total ||   ||   ||   ||   ||
 * Units Produced ||  || 42,000 || 90,000 || 50,000 || 182,000 ||   ||   ||   ||   ||
 * Direct Labor per unit ||  || __x .35__ || __x .35__ || __x .35__ || __x .35__ ||   ||   ||   ||   ||
 * Direct Labor Hours needed ||  || 14,700 || 31,500 || 17,500 || 63,700 ||   ||   ||   ||   ||
 * Cost per Direct Labor Hour ||  || __x $14__ || __x $14__ || __x $14__ || __x $14__ ||   ||   ||   ||   ||
 * Total Direct Labor Cost ||  || __**$205,800**__ || __**$441,000**__ || __**$245,000**__ || __**$891,800**____ ||   ||   ||   ||   ||
 * Total Direct Labor Cost ||  || __**$205,800**__ || __**$441,000**__ || __**$245,000**__ || __**$891,800**____ ||   ||   ||   ||   ||