February 700 units of sales 1900 units desired ending

Assignment Help Financial Accounting

Reference no: EM13370984

February
700 units of sales
+1900 units desired ending inventory
=2600
-800 beginning inventory
=800 units to be produced
2 (Production, direct materials, and direct labor budgets) Gerrad Manufacturing has projected sales of its product for the next six months as given:

January 300 units
February 700 units
March 1,000 units
April 900 units
May 400 units
June 300 units

The finished product needs 3 pounds of raw material and 10 hours of direct labor.

Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the present month's production needs. January's starting inventories are expected to conform to company policy.

a. Make a production budget for February, March, and April.

b. Make a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April

c. Create a direct labor budget (assuming a $12 per hour rate) for February, March, and April.

Reference no: EM13370984

Questions Cloud

Prepare multiple-step income statementshown below is : prepare multiple-step income statement.shown below is information related to farr company.retained earnings 31st

Question 1 from a legal perspective define if it is easier : question 1 from a legal perspective define if it is easier for a manager to deal with an employee or an independent

Quark spy equipment manufactures espionage equipment quark : quark spy equipment manufactures espionage equipment. quark uses a job-order cost system and applies overhead to jobs

Laine and emma form the equal el partnership emma : laine and emma form the equal el partnership. emma contributes cash of 100000. laine contributes property with an

February 700 units of sales 1900 units desired ending : february 700 units of sales 1900 units desired ending inventory2600-800 beginning inventory800 units to be produced 2

A summary balance sheet for the mccune oakley and nall : a summary balance sheet for the mccune oakley and nall partnership appears below. mccune nall and oakley share profits

Greiner company makes and sells high-quality glare filters : greiner company makes and sells high-quality glare filters for microcomputer monitors. john graven controller is liable

Tara incorporates her sole proprietorship transferring it : tara incorporates her sole proprietorship transferring it to recently formed black corporation. the assets transferred

You were hired as a financial consultant to defense : you were hired as a financial consultant to defense electronics inc dei a large publicly traded firm that is the market

User Account

All Pages