Barnes Manufacturing Co. forecasts October sales to be 45,000 units. Additional information follows:- Finished goods inventory, October 1: 5,000 units- Finished goods inventory desired, October 31: 4,000 units**Direct labor hours required in production:**| Department | Hours per Unit ||------------|----------------|| Cutting | 0.25 || Assembly | 0.50 |Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour.Prepare the following:a. A production budget for October.b. A direct labor budget for October. ### Production Budget and Direct Labor Budget for Barnes Manufacturing Co.#### a. Barnes Manufacturing Co.**Production Budget for the Month Ended October 31, 20--**- **Units** - **Sales** - **Plus desired ending inventory, October 31** - **Total** - **Less estimated beginning inventory, October 1** - **Total production**This section outlines the production budget details, showing how the company aims to meet product demand by adjusting inventory levels. The total production is calculated based on sales forecasts and inventory management.#### b. Barnes Manufacturing Co.**Direct Labor Budget for the Month Ended October 31, 20--**- **Cutting | Assembly | Total** - **Hours required for production:** - **Cutting hours** - **Assembly hours** - **Hourly rate** - **Total direct labor cost**This section of the budget details the labor requirements for the production period. It specifies the number of hours needed for cutting and assembly processes, the hourly rates, and the total direct labor costs involved.Both budgets are essential tools for planning and controlling production and labor expenses, aligning with business objectives for the specified period.

We need to find out the total production in order to find out hours required for production.

Barnes Manufacturing Co. forecast October sales to be 45,000 units. Additional information follows: Finished goods inventory, October 1. 5,000 units Finished goods inventory desired, October 31 4,000 units Direct labor hours required in production: Department Hours per Unit Cuting 0.25 Assembly 0.50 Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour. Prepare the following: a. A production budget for October. b. A direct labor budget for October.

Barnes Manufacturing Co. forecast October sales to be 45,000 units. Additional information follows: Finished goods inventory, October 1. 5,000 units Finished goods inventory desired, October 31 4,000 units Direct labor hours required in production: Department Hours per Unit Cuting 0.25 Assembly 0.50 Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour. Prepare the following: a. A production budget for October. b. A direct labor budget for October.

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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