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David, Inc. is preparing its master budget for the second quarter. The following sales and production data have been

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Question

David, Inc. is preparing its master budget for the second quarter. The following sales and production data have been forecasted;April May June July August;Unit Sales 400 500 520 480 540;Finished goods inventory on March 31: 120 units;Raw materials inventory on March 31: 450 pounds;Desired ending inventory each month;Finished goods: 30% of next month's sales;Raw materials: 25% of next month's production needs;Number of pounds of raw material required per finished unit: 4 lb.;Number of direct labor hours to produce each unit: 3 hours Labor rate per hour: $10;(a) How many units should be produced during April and May?;(b) How many pounds of raw materials should be purchased in April?;(c) What is the budgeted labor cost for April?

 

Paper#80345 | Written in 18-Jul-2015

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