ABC provides the following data for Apr-June 2021: Sales (units) Ending Finished goods inventory - Mar 2021 - 181 units Desired ending inventory: Finished goods (units) = 35% of next month's sales Apr Direct labor hours per unit = 0.8 hrs. Direct labor rate= $15/hour 515 Direct Materials: Desired ending inventory: Raw materials (pounds) = 25% of next month's production needs Ending Raw Materials inventory - Mar 2021-727 lbs Pounds of raw material required to make each Unit = 7 lbs Raw material price = $12/lb Required: a. Prepare the Production Budget for Apr, May, Jun 2021. b. Prepare the Direct Materials Budget for Apr, May, Jun 2021. c. Prepare the Direct Labor Budget for Apr, May, Jun 2021. May Jun July 545 570 595
ABC provides the following data for Apr-June 2021: Sales (units) Ending Finished goods inventory - Mar 2021 - 181 units Desired ending inventory: Finished goods (units) = 35% of next month's sales Apr Direct labor hours per unit = 0.8 hrs. Direct labor rate= $15/hour 515 Direct Materials: Desired ending inventory: Raw materials (pounds) = 25% of next month's production needs Ending Raw Materials inventory - Mar 2021-727 lbs Pounds of raw material required to make each Unit = 7 lbs Raw material price = $12/lb Required: a. Prepare the Production Budget for Apr, May, Jun 2021. b. Prepare the Direct Materials Budget for Apr, May, Jun 2021. c. Prepare the Direct Labor Budget for Apr, May, Jun 2021. May Jun July 545 570 595
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:ABC provides the following data for Apr-June 2021:
Sales (units)
Ending Finished goods inventory - Mar 2021 - 181 units
Desired ending inventory:
Finished goods (units) = 35% of next month's sales
Apr
Direct labor hours per unit = 0.8 hrs.
Direct labor rate= $15/hour
515
Direct Materials:
Desired ending inventory:
Raw materials (pounds) = 25% of next month's production needs
Ending Raw Materials inventory - Mar 2021-727 lbs
Pounds of raw material required to make each Unit = 7 lbs
Raw material price = $12/lb
Required:
a. Prepare the Production Budget for Apr, May, Jun 2021.
b. Prepare the Direct Materials Budget for Apr, May, Jun 2021.
c. Prepare the Direct Labor Budget for Apr, May, Jun 2021.
May Jun July
545 570 595
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Production Budget,Direct materials budget and Direct labor budget :
VIEWStep 2: 1.Preparation of production budget for April, May and June 2021 :
VIEWStep 3: 2..Preparation of Direct materials budget for April and May 2021 :
VIEWStep 4: 3..Preparation of Direct labor budget for April, May and June 2021 :
VIEWSolution
VIEW
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education