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b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. Required raw material units Cost of raw material purchases $ Units produced DLHS per unit Total hours Cost per DLH Cost of DL February $ $ 0 0 0 0 $ 0 $ 0 0 $ c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February March March 0 0 0 0 $ 0 $ April 0 0 $ 0 0 0 0 0 April 0 0

b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. Required raw material units Cost of raw material purchases $ Units produced DLHS per unit Total hours Cost per DLH Cost of DL February $ $ 0 0 0 0 $ 0 $ 0 0 $ c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February March March 0 0 0 0 $ 0 $ April 0 0 $ 0 0 0 0 0 April 0 0

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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b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. Required raw material units Cost of raw material purchases $ Units produced DLHS per unit Total hours Cost per DLH Cost of DL February $ $ 0 0 0 0 $ 0 $ 0 0 $ c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February March March 0 0 0 0 $ 0 $ April 0 0 $ 0 0 0 0 0 April 0 0
Transcribed Image Text:b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. Required raw material units Cost of raw material purchases $ Units produced DLHS per unit Total hours Cost per DLH Cost of DL February $ $ 0 0 0 0 $ 0 $ 0 0 $ c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February March March 0 0 0 0 $ 0 $ April 0 0 $ 0 0 0 0 0 April 0 0
Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 180 units February 420 units March 600 units April 540 units May 240 units June 180 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. Sales EI Total units needed BI Units produced February 0 0 0 0 0 March 0 0 0 0 0 April 0 0 0
Transcribed Image Text:Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 180 units February 420 units March 600 units April 540 units May 240 units June 180 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. Sales EI Total units needed BI Units produced February 0 0 0 0 0 March 0 0 0 0 0 April 0 0 0
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