Prepare production budget in units for products A and B

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Question - Bacon Industries manufactures two products: A and B. The company predicts a sales volume of 10,000 units for product A and ending finished-goods inventory of 2,000 units. These numbers for product B are 12,000 and 3,000, respectively. Bacon currently has 7,000 units of A in inventory and 9,000 units of B.

The following raw materials are required to manufacture these products:

Raw Material Cost per Pound Required for Product A Required for Product B X $2.00 2 pounds Y 2.50 1 pound 1 pound Z 1.25 3 pounds.

Product A requires three hours of cutting time and two hours of finishing time; B requires one hour and three hours, respectively. The direct labor rate for cutting is $10 per hour and $18 per hour for finishing.

Required -

A. Prepare production budget in units for products A and B.

B. Prepare materials usage budget in pounds and dollars for materials X, Y, and Z.

C. Prepare direct labor budget in hours and dollars for product A.

Reference no: EM132811526

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