Jimenez Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 20,000 Knox lamps and 10,000 Ayer lamps in 2017.

The following data are available for the year 2017.

Calculate

(a) the direct materials usage budget in quantity and dollars (label it Schedule 3A);

(b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and

(c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2017.

Transcribed Image Text:

Direct materials Metal Fabric Direct manufacturing labor Content of Each Product Unit $3 per pound (same as in 2016) $ 4 per yard (same as in 2016) $20 per hour Product Knox Ayer Metal 2 pounds 3 pounds Fabric 1 yard 1.5 yards Direct manufacturing labor 0.15 hours 0.2 hours Direct Materials Metal Fabric Beginning inventory 12,000 pounds 7,000 yards Target ending inventory 10,000 pounds 5,000 yards