Question

In: Accounting

Next Year’s Sales Projections: Product Sales Price # of Units Handbags $400.00 10,000 Wallets $120.00 15,000...

Next Year’s Sales Projections:

Product	Sales Price	# of Units
Handbags	$400.00	10,000
Wallets	$120.00	15,000

Inventories:

Product	Beginning of Next Year	End of Next Year
Handbags	1,000	1,500
Wallets	1,500	500

Direct Materials:

Direct Material	Handbag	Wallet
Leather	3 feet	1 foot
Zipper	3 zippers	1 zipper
Embellishments	20	5

Direct Material Costs:

	Purchase Price	Inventory – Beg	Inventory - End
Leather	$40.00 foot	100 feet	50 feet
Zipper	$10 zipper	20 zippers	20 zippers
Embellishments	$5	30	20

Labor Requirements:

	Hours per Unit	Rate per Hour
Handbags	8	$24
Wallets	3.5	$20

Overhead is applied at $10 per direct labor hour

prepare:

A/ Sales Budget

B/ Production Budget

C/ Purchasing Budget

D/ Direct Labor Budget

E/ Total Production Cost per Unit of each product.

Expert Solution

ekkarill92 answered 1 year ago

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