Hello, I am working on the assignment below, but I am unsure of how to solve it,

Question

Hello, I am working on the assignment below, but I am unsure of how to solve it, please help me in solving it.

1.1. Benet Company has budgeted the following unit sales:

The finished goods inventory on hand on December 31, 2015 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's anticipated sales.

Prepare a production budget for 2016.

2. Pulham Company is preparing its direct labor budget for 2016 from the following production budget based on a calendar year:

Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.

Prepare a direct labor budget for 2016.

PULHAM COMPANY
Direct Labor Budget
For the Year Ended December 31, 2016

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Total

2017 2016 Quarter Units Quarter Units 1 105,000 1 90,000 2 60,000 3 75,000 4 120,000

Explanation / Answer

Part 1

Part 2

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BENET COMPANY Production Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Sales 105000.00 60000.00 75000 120,000.00 ADD : Closing Stock 12000.00 15000.00 24,000.00 18,000.00 LESS : Opening Stock 21000.00 12000.00 15,000.00 24,000.00 Production (Units) 96000.00 63000.00 84000.00 114000.00

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