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Young Products produces coat racks. The projected sales for the first quarter of the coming year and the beginning and ending inventory data are as follows:
Unit sales
100,000
Unit price
$15
Units in beginning inventory
8,000
Units in targeted ending inventory
12,000
The coat racks are molded and then painted. Each rack requires four pounds of metal, which costs $2.50 per pound. The beginning inventory of materials is 4,000 pounds. Young Products wants to have 6,000 pounds of metal in inventory at the end of the quarter. Each rack produced requires 30 minutes of direct labor time, which is billed at $9 per hour.
1. Prepare a sales budget for the first quarter.
2. Prepare a production budget for the first quarter.
3. Prepare a direct materials purchases budget for the first quarter.
4. Prepare a direct labor budget for the first quarter.
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