BUDGETS OF A MANUFACTURING COMPANY 2. MEWTWO INC. has the following budgeted sales for the next six month period: August September 90,000 120,000 210,000 150,000 October November 180,000 120,000 June July There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Inventory levels for materials are equal to 30 % of the needs for the next month. Materials inventory on June 1 was 15,000 pounds. Each unit requires 0.50 direct labor hours at a rate of P5 per hour. Overhead is applied on the basis of P2 per direct labor hour. REQUIREMENTS: (a) Each pound of material costs P8. Prepare production budgets in units for July, August, and September. (b) Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month. (c) Compute for the total labor hours and total labor cost for July, August and September. (d) Prepare the overhead budget.

BUDGETS OF A MANUFACTURING COMPANY 2. MEWTWO INC. has the following budgeted sales for the next six month period: August September 90,000 120,000 210,000 150,000 October November 180,000 120,000 June July There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Inventory levels for materials are equal to 30 % of the needs for the next month. Materials inventory on June 1 was 15,000 pounds. Each unit requires 0.50 direct labor hours at a rate of P5 per hour. Overhead is applied on the basis of P2 per direct labor hour. REQUIREMENTS: (a) Each pound of material costs P8. Prepare production budgets in units for July, August, and September. (b) Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month. (c) Compute for the total labor hours and total labor cost for July, August and September. (d) Prepare the overhead budget.

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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