Calculate Detmer Enterprises budgeted salaries payable

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Question - Detmer Enterprises has the following budgeted sales:

Budgeted Sales in Units

June 6,800 units

July 5,100 units

August 4,400 units

September 3,700 units

Past experience has shown that the ending finished goods inventory for each month should be equal to 25% of the next month's expected sales in units. Additionally, it is known that every unit produced requires four direct labor hours to make and direct laborers are paid $15 per hour.

Assume that Detmer pays 65% of its direct labor in the same month the employee works, pays 30% of its direct labor in the month after the employee works, and the final 5% is paid two months after the employee works. Calculate Detmer Enterprises' budgeted salaries payable at August 31.

Reference no: EM132510849

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