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How many units should be produced in may

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Q1. David Beadle Company makes patio chairs that require production time of 30 minutes per unit. The company wants its finished goods inventory to equal 10% of the following month's sales. The budgeted labour rate is $9 per hour. Planned sales for October, November, and December, respectively, are 8,000; 11,000; and 14,000 chairs. Budgeted direct labour cost for December is $63,900. What are budgeted unit sales for January of the following year?

a. 14,000

b. 15,000

c. 16,000

d. 17,000

Q2. David Beadle Company makes patio chairs that that require production time of 30 minutes per unit. The company wants its finished goods inventory to equal 10% of the following month's sales. The budgeted labour rate is $9 per hour. Planned sales for October, November, and December, respectively, are 8,000; 11,000; and 14,000 chairs. Budgeted direct labour cost for December is $63,900. What is the company's planned direct labour cost for November?

a. $50,850

b. $52,200

c. $48,150

d. $49,500

Q3. Turksen Inc. has predicted second-quarter sales as follows:

 

April

May

June

Units

44,000

31,000

40,000

Turksen management wants each month's ending inventory to equal 20% of the next month's sales. How many units should be produced in May?

a. 29,200

b. 31,000

c. 32,800

d. 39,000

Reference no: EM133131582

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