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Prepare a production budget for august,

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Reference no: EM132009910

Question - Abdullah, Inc. has projected sales of its product for the next 6 months as follows:

Units

July 120

August 270

September 300

October 240

November 90

December 210

The product sells for $100 per unit, variable expenses are $30 per unit, and fixed expenses are $1,500 per month. The finished product requires 3 units of raw material and 10 hours of direct labor. The company tries to maintain an ending inventory of finished goods equal to the next 2 months of sales.

a. Prepare a production budget for August, September, and October.

b. Prepare direct material budget for August, September, and October.

Reference no: EM132009910

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