What is merchant co budgeted production

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Merchant Co. expects to sell 10,000 units at $120 each. Each unit is expected to require 21bs. of material @ $10! lb. and 3 direct labor hours @ $5fDLH. The overhead rate is estimated to be $15IDLH. The beginning inventories are: DM 1,000 lbs. and Finished Goods 2,000 units. The budgeted ending inventories are: DM 2,000 lbs. and Finished Goods 1,000 units.

Question 1: What is Merchant Co's budgeted sales (in $)? What is Merchant Co's budgeted production (in units)?

Question 2: Assuming a production of 9,500 units, what is the budgeted materials purchase

Reference no: EM132648831

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