Drop downs for picture 1: Beginning inventory (lbs) Budgeted ending inventory (l

Question

Drop downs for picture 1: Beginning inventory (lbs) Budgeted ending inventory (lbs) Budget unit sales for month Direct labor hours per unit (hrs) Direct labor rate (per hour) Material price per pound Materials to be purchased Drop downs for picture 1: Beginning inventory (lbs) Budgeted ending inventory (lbs) Budget unit sales for month Direct labor hours per unit (hrs) Direct labor rate (per hour) Material price per pound Materials to be purchased Drop downs for picture 2: Beginning inventory (lbs) Budgeted ending inventory (lbs) Budget unit sales for month Direct labor hours per unit (hrs) Direct labor rate (per hour) Material price per pound Materials to be purchased Drop down for picture 3 Fixed factory overhead rate per direct labor hour Variable factory overhead rate per direct labor hour
Required information Ramos Co. provides the following sales forecast and production budget for the next four months Sales (units) Budgeted production (units) 6e 442570544540 The company plans for finished goods inventory of 120 units at the end of June In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials r entry equal to 30% of next month's production needs. Beginning direct materials inventory for Apil was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8.000 per month. Prepare a direct materials budget for Apri, May, and June Direct Materials Budget For April, May and June Budget production (units) 442 570 644 units ?lbs Materials needed for production (s Total materials requirements (bs) Materials to be purchased (ibs.) Materials price per pound Budgeted cost of direct materials purchases

Explanation / Answer

RAW MATERIAL PURCHASE BUDGET April May June Year July Budgeted Production Units 442 570 544 1,556 540 RM Requirement per unit in pounds 5 5 5 5 5 Total Raw material required in pounds 2,210 2,850 2,720 7,780 2,700 Add: Desired Ending Inventory 855 816 810 810 Total needs 3,065 3,666 3,530 8,590 Less: Beginning Inventory 663 855 816 663 Budgeted Purchase in pounds 2,402 2,811 2,714 7,927 Cost per pound 2 2 2 2 Budgeted Purchase in $ 4804 5622 5428 15854 LABOUR COST BUDGETS April May June Year Units to be produced 442 570 544 1,556 Labour required per unit 0.5 0.5 0.5 0.5 Labour hours 221 285 272 778 Labuor Rate per hour 16 16 16 16 Budgeted Labour cost in $ 3,536 4,560 4,352 12,448 FACTORY OVERHEADS BUDGET April May June Year Units to be produced 442 570 544 1,556 Variable OH per unit 20 20 20 20 Budgeted Variable OH 8840 11400 10880 31120 Budgeted Fixed OH 8000 8000 8000 24000 Budgeted Factory overheads 16,840 19,400 18,880 55,120

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