152. Clic, Inc. provides the following data for the next four months:
March
April
May
June
July
Unit Sales
500
580
530
600
Ending Raw Materials Inventory
663 lbs.
Ending Finished Goods Inventory
174 units
Desired ending inventory:Raw materials = 30% of next month's production needsFinished goods = 20% of next month's salesPounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hourRequired:
a. Calculate the budgeted production for April and May.b. Calculate the amount of purchases of raw materials in pounds for April and May.
c. Calculate the cost of direct labor for May.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here