Calculate production budget in units and direct labor cost

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The sales projection of a certain company for the next year of operations will be 15,000 units. Currently, the company has 15,000 units in inventory. Since it understands that it is a lot of inventory, the company plans to reduce the ending inventory of the next year of operations to 60% of the current quantity. Furthermore, the company wants to project its conversion costs for the next year and plan how to reduce them. Currently, these costs represent an average of $ 55 / unit to produce, of which 40% represent direct labor.

Calculate the production budget in units and direct labor cost

Reference no: EM132492027

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