10) What is the total estimated direct labor cost for July assuming the direct l
ID: 2465585 • Letter: 1
Question
10) What is the total estimated direct labor cost for July assuming the direct labor workforce os adjusted to match the hours required to produce the forecasted number of units produced? 11) If the Company always uses an estimated predetermined plantwide overhead rate of $8 per direct labor hour, what is the estimated unit product cost? 12) what is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of 8$ per direct labor-hour?The following information applies to the questions displayed below Morganton Compeny makes one product and it provided the following information to help prepare the master budget for its first four months of operations a. The budgeted seling price per unit is $65. Budgeted unit sales for June, July, August, and September are 8,200, 12,000, 14,000, and 15,000 units, respectively. All sales are on credit b. Forty percent of credit sales are colected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 20% of the following month's unit sales. Each unit of finished goods requires 5 pounds of raw materials. The raw meterials cost $2.00 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. t. The direct lebor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours g The variable selling and administrative expense per unit sold is $1.30. The fixed selling and administrative expense per month is $62,000. 0
Explanation / Answer
9) Ending raw material inventory at the end of July = $14200
10) Total estimated direct labour cost
= production for july x 2 hours per unit x $13
= 12400 units x 2 hours/unit x $13/hour
= $322400
11)
12) estimated finished goods inventory balance at the end of July = 2800 units (refer to the first table)
estimated cost of finished goods inventory balance at the end of July = 2800 units x $44/unit = $123200
June July August Sept Sales volume (units) 8200 12000 14000 15000 Ending inventory (units) 2400 2800 3000 Total requirement (units) 10600 14800 17000 Less: beginning Inventory 2400 2800 Production for July (units) 12400 14200 Raw material required (pounds) @ 5 pound per unit 62000 71000 ending inventory (pound) 7100 Ending inventory in dollars (@ $2 per pound) 14200Related Questions
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