Question 5 3.5 pts Detmer Enterprises has the following budgeted sales: Budgeted

Question

Question 5 3.5 pts Detmer Enterprises has the following budgeted sales: Budgeted Sales in Units September October November December 5,400 units 3,900 units 7,200 units 9,900 units Past experience has shown that the ending finished goods inventory for each month should be equal to 30% of the next month's expected sales in units. Additionally, it is known that every unit produced requires four direct labor hours to make and direct laborers are paid $18 per hour. Assume that Detmer pays 65% of its direct labor in the same month the employee works and pays the other 35% in the month after the employee works. Calculate the budgeted salaries payable balance reported in the pro forma balance sheet at November 30. Do not use decimals in your answer

Explanation / Answer

November Budgeted sales 7200 Add: Desired ending inventory 2970 Total needs 10170 Less: Beginning inventory 2160 Budgeted production 8010 Direct labor hours per unit 4 Total direct labor hours 32040 Cost per direct labor hour 18 Total direct labor cost 576720 Budgeted salaries payable at Nov 30 = 576720*35%= 201852

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