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K Xander Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 per skein and 0.75 gallons of dye at a cost of $8 per gallon. All other materials are indirect. At the beginning of the year Xander has an inventory of 462,000 skeins of wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target ending inventory of wool and dye is zero. Xander uses the FIFO inventory cost flow method. Requirement 1. Prepare a direct material usage budget in both units and dollars. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Direct Material Usage Budget in Quantity and Dollars Material Physical Units Budget Direct materials required for Blue rugs Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) Wool Dye To be purchased this period Wool Wool 11 skeins Dye gal (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xander budgets 55 direct manufacturing labor-hours to weave a rug at a budgeted rate of $15 per hour. It budgets 0.25 machine-hours to dye each skein in the dyeing process. (Click the icon to view the budgeted overhead costs.) Read the requirements. This question: 30 point(s) possible Total

Xanster Manulacturing Comoany mandactures blue rugs, using wool and dye es direct materials. One nug is budgeted to use 40 skoint of wool at a cout ef $4 per alein and 0.75 galons of dye at a cost of $8 per galion. All ober materials are indirect. As the beginneng of the your Xander has an invertory of 462,000 sheins of wool at a cost of $1,062,600 and 4,200 galons of dye at a cost ef $25,200. Target endieg inventory di wool and dye is zero. Xander vees the FiFO inventocy cost fow method. (B) (Click the icont to vew the adefichal information) Thare ia no ofrect manulacturing laber cest for obeing, Xander budgets 55 direct manulacturing labothours to weave a ivg at a budgeted rate of $15 per hour if budgets 0.25 machine houn to dre esch skein in the dreing procest. Resd the rocirenents Requirement 1. Propare a direct materai usage budget in both units and dolars. Eegin with the phryical units portion, then prepare the cest budget portion of the dirnct makerial usage budget

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