The following are budgeted data: January February…
The following are budgeted data: January February March Sales in units 15,500 21,000 18,500 Production in units 18,500 19,500 17,400 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 30% of the following month’s production needs. Purchases of raw materials for February would be budgeted to be:
Read DetailsClear Current LLC makes and sells a product called Eze. Each…
Clear Current LLC makes and sells a product called Eze. Each unit of Eze requires 4.0 hours of direct labor at the rate of $19.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for August. The company plans to sell 29,000 units of Eze in August. The finished goods inventories on August 1 and August 30 are budgeted to be 510 and 90 units, respectively. Budgeted direct labor costs for August would be:
Read DetailsGulf Inc. makes and sells a product called a Hydro. One Gydr…
Gulf Inc. makes and sells a product called a Hydro. One Gydro requires 4.5 kilograms of a raw material. Budgeted production of Hydro for the next five months is as follows: August 23,700 units September 22,400 units October 23,800 units November 25,000 units December 24,700 units The company wants to maintain monthly ending inventories of the raw material equal to 25% of the following month’s production needs. On July 31, this requirement was not met since only 11,900 kilograms of the raw material were on hand. The cost of the raw material is $18 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of raw material to be purchased in August is:
Read DetailsUnion Street Corp. makes and sells only one product called a…
Union Street Corp. makes and sells only one product called a Cactus. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Monthly Fixed Cost Variable Cost Per Cactus Sold Sales commissions $ 1.04 Shipping $ 1.54 Advertising $ 51,400 $ 0.34 Executive salaries $ 61,400 Depreciation on office equipment $ 21,400 Other $ 41,400 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 16,400 Cactus products in February, then the total budgeted fixed selling and administrative expenses for February is:
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