Sartain Corporation is in the process of preparing its annual budget. The follow

Question

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:

Capati Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 2,300 units in August and 2,200 units in September. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy.

Construct the direct labor budget for the next two months. (Omit the "$" sign in your response.)

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

Starting Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Each unit of finished goods requires 2 grams of raw material. If the company plans to sell 670,000 units during the year, the number of units it would have to manufacture during the year would be: Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget. The desired ending inventory of Material A for the month of March is: Capati Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.41 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 2,300 units in August and 2,200 units in September. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy. Construct the direct labor budget for the next two months. (Omit the "$" sign in your response.)

Explanation / Answer

Q1) Production = Sale + Ending Inventory - Begiinning Inventory = 670000 +70000 -20000 = 720000 Units

720,000 units

Q2) The desired ending inventory of Material A for the month of March = 20%*11900 *3 = 7140 Yard

7,140 yards

Q3) Construct the direct labor budget for the next two months. (Omit the "$" sign in your response.)

August September Required production in units 2300 2200 Direct labor-hours per unit 0.41 0.41 Total direct labor-hours needed 943 902 Total direct labor-hours paid 960 960 Direct labor cost per hour 8.5 8.5 Total direct labor cost 8160 8160

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