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Lily Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour (a) January 13,200 > $60 2.0 $6.0 February March April May 15,400 14,300 12,100 12,100 $57.5 $57.5 $57.5 $57.5 2.0 $6.0 1.5 $6.0 Lily has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lily expects to begin the year with 19,360 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. 1.5 1.5 $7.0 $7.0 Prepare a production budget for Lily Company by month and for the first quarter of the year. LILY COMPANY Production Budget Jan Feb Mar Total

Lily Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour (a) January 13,200 > $60 2.0 $6.0 February March April May 15,400 14,300 12,100 12,100 $57.5 $57.5 $57.5 $57.5 2.0 $6.0 1.5 $6.0 Lily has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lily expects to begin the year with 19,360 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. 1.5 1.5 $7.0 $7.0 Prepare a production budget for Lily Company by month and for the first quarter of the year. LILY COMPANY Production Budget Jan Feb Mar Total

FINANCIAL ACCOUNTING
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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Lily Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour (a) January 13,200 > $60 2.0 $6.0 February March April May 15,400 14,300 12,100 12,100 $57.5 $57.5 $57.5 $57.5 2.0 $6.0 1.5 $6.0 Lily has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lily expects to begin the year with 19,360 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. 1.5 1.5 $7.0 $7.0 Prepare a production budget for Lily Company by month and for the first quarter of the year. LILY COMPANY Production Budget Jan Feb Mar Total
Transcribed Image Text:Lily Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2022. Estimated unit sales Unit selling price Direct labor hours per unit Direct labor cost per hour (a) January 13,200 > $60 2.0 $6.0 February March April May 15,400 14,300 12,100 12,100 $57.5 $57.5 $57.5 $57.5 2.0 $6.0 1.5 $6.0 Lily has a labor contract that calls for a wage increase to $7.0 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lily expects to begin the year with 19,360 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 40% of the second following month's sales. 1.5 1.5 $7.0 $7.0 Prepare a production budget for Lily Company by month and for the first quarter of the year. LILY COMPANY Production Budget Jan Feb Mar Total
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