Question

In: Accounting

The budgeted sales in units for the next four months as follows: July 7,200 units August...

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

July

7,200 units

August

5,400 units

September

6,800 units

October

7,000 units

1. Prepare the sales budget for the third quarter of the company knowing that each unit is sold for $40. (1.5pt)

2. Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory in the beginning of July was only 600 units.

Prepare the production budget for each month of the third quarter and for the quarter in total. (3pts)

3. Each unit produced requires 0.30 direct labor-hours and direct labor-hour workers are paid $10 per hour.   

Construct the company’s direct labor budget for the quarter, assuming that the direct labor workforce is adjusted each month to match the number of hours required to produce the forecasted number of units produced.    (1.5pt)

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ekkarill92 answered 2 years ago
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