Cari Furniture has the following information in respect of Coffee tables for 2021: Production specifications: Beginning InventoryTarget Ending Inventory Direct Materials: Particle board20,000 b.f.18,000 b.f.Teak25,000 b.f.22,000 b.f.Finished goods: Coffee tables5,000 units3,000 units Revenue expected for 2021 are: Selling price$392 per tableUnits sold52,000 coffee tablesEach coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak. Costs for 2020 and expected for 2021include: 20202021 Particle board (per b.f.)$ 3.90$ 4.00Teak (per b.f.)$ 5.80$ 6.00Laminating labor (per hour)$24.00$25.00Machining labor (per hour)$29.00$30.00 Prepare the materials usage budget.

Materials usage budget refers to the budget which is used in planning how much the raw materials…

Answered: Cari Furniture has the following…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Cari Furniture has the following information in respect of Coffee tables for 2021:

Production specifications:


	Beginning Inventory	Target Ending Inventory
Direct Materials:
Particle board	20,000 b.f.	18,000 b.f.
Teak	25,000 b.f.	22,000 b.f.
Finished goods:
Coffee tables	5,000 units	3,000 units

Revenue expected for 2021 are:
Selling price	$392 per table
Units sold	52,000 coffee tables

Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak.

Costs for 2020 and expected for 2021

include:

	2020	2021

Particle board (per b.f.)	$ 3.90	$ 4.00
Teak (per b.f.)	$ 5.80	$ 6.00
Laminating labor (per hour)	$24.00	$25.00
Machining labor (per hour)	$29.00	$30.00

Prepare the materials usage budget.

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