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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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