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In: Accounting

Company budgeted sales in units for the next four months as follows: July 7,000 units August...

  1. Company budgeted sales in units for the next four months as follows:

July

7,000 units

August

5,000 units

September

6,500 units

1. Prepare the sales budget for the company knowing that each unit is sold for $50. (1 pt)

2. Past experience has shown that the ending inventory for each month should be equal to 20% of the next month's sales in units. The inventory in the beginning of July was only 1,000 units, & the inventory on September 30 is expected to be equal to 1,300 units .

   Prepare the production budget for each month of the third quarter (starting July, ending September) and for the quarter in total.

3.Each unit produced requires 0.40 direct labor-hours and direct labor-hour workers are paid $10 per hour. Construct the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

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ekkarill92 answered 2 years ago
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