b- IB F8 9 F10 apter 9 complete the Production Budget. Desired ending inve units

Question

b- IB F8 9 F10 apter 9 complete the Production Budget. Desired ending inve units. this was met for March and carried to April's beginning inventory. July sales are expected to be 800 ntory is 20% of next month's needs. Assume April May June Total 300 Sales (Units) Desired ending Inv. Total needs Less Beg. Inv Units to produce 6001 500 | 14001 Determine the total amount of Direct Labor in our budget for January and February together given the following information: Direct Labor per unit 1.5 hours Direct Labor rate $30 per hour Expected number of units to produce in January is 2,000 Expected number of units to produce in February is 2,500 February January

Explanation / Answer

Production Budget: April May June Total Sales (Units) 300 600 500 1400 Desired Ending Inventory 120 100 160 160 Total Needs 420 700 660 1560 Less: Beginning Invnetory 60 120 100 60 Units to produce 360 580 560 1500 Direct Labour Budget: January February Direct Labor per unit (Hours) 1.5 1.5 Direct Labor rate per hour ($) 30 30 Direct Labor rate per unit 45 45 Expected Number of units to produce 2000 2500 Total Direct Labor 90000 112500

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