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Gerrad Manufacturing has projected sales of its product for the next six months as follows:

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Question;Gerrad Manufacturinghas projected sales of its product for the next six months as follows:January 300 unitsFebruary 700 unitsMarch 1,000 unitsApril 900 unitsMay 400 unitsJune 300 unitsThe finished product requires 3 pounds of raw material and 10 hours of direct labor.Gerrad tries to maintain a Finished Goods ending inventory equal to the next twomonths of sales and a Raw Material ending inventory equal to one-half of the currentmonth?s production needs. January?s beginning inventories are expected to conform tocompany policy.a. Prepare a production budget for February, March, and April.b. Prepare a forecast of the units and cost of raw material that will be required forFebruary, March, and April. Th e expected cost per pound of raw material is expectedto be $2 in February, $2.30 in March, and $2.40 in April.c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March,and April."1. Prepare a Production Budget for February, March, and April, include a totals column for the period.2. Prepare a forecast (Purchases Budget) of the units and cost of raw material that will be required for February, March, and April, include a totals column for the period.3. Prepare a Direct Labor Budget for February, March, and April, include a totals column for the period.4. All schedules should be in Excel and in a format appropriate for presentation to management.Additional Requirements Level of Detail: Show all work Other Requirements: -Prepare a Production Budget for February, March, and April, include a totals column for the period.- Prepare a forecast (Purchases Budget) of the units and cost of raw material that will be required for February, March, and April, include a totals column for the period.- Prepare a Direct Labor Budget for February, March, and April, include a totals column for the period. - All schedules should be in Excel and in a format appropriate for presentation to management.

 

Paper#43556 | Written in 18-Jul-2015

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