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Direct requirements per unit Doggie Carri Kitty Kat Carrier 6 pounds 1 pound 5 hours Plastic 4 pounds .5 pounds Metal Direct labor Hours 3 hours Doggie Kittie Sales Sales volume 425 620 Selling price $160 $205 Expected inventory levels Beg Inv End Inv Direct Materials Plastic 290 410 Metal 70 65 Finished Product Doggie 10 30 Kittie Kat 25 10

Direct requirements per unit Doggie Carri Kitty Kat Carrier 6 pounds 1 pound 5 hours Plastic 4 pounds .5 pounds Metal Direct labor Hours 3 hours Doggie Kittie Sales Sales volume 425 620 Selling price $160 $205 Expected inventory levels Beg Inv End Inv Direct Materials Plastic 290 410 Metal 70 65 Finished Product Doggie 10 30 Kittie Kat 25 10

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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The Pet Company has two major pet carriers; Doggie Carrier and Kitty Kat Carrier. It is time for the company to prepare their annual budget and they called you for help. The company has provided you with the following data: Direct material cost $ 5.00 per pound 4.00 per pound Plastic Metal $ Direct labor rate 18.00 per hour Direct requirements per unit Doggie Carri Kitty Kat Carrier 4 pounds Plastic 6 pounds Metal .5 pounds |1 pound Direct labor Hours 3 hours 5 hours Doggie Kittie Sales Sales volume 425 620 Selling price $160 $205 Expected inventory levels Beg Inv End Inv Direct Materials Plastic 290 410 Metal 70 65 Finished Product Doggie 10 30 Kittie Kat 25 10 Required А. Prepare the revenue budget В. Prepare the production budget in units
Transcribed Image Text:The Pet Company has two major pet carriers; Doggie Carrier and Kitty Kat Carrier. It is time for the company to prepare their annual budget and they called you for help. The company has provided you with the following data: Direct material cost $ 5.00 per pound 4.00 per pound Plastic Metal $ Direct labor rate 18.00 per hour Direct requirements per unit Doggie Carri Kitty Kat Carrier 4 pounds Plastic 6 pounds Metal .5 pounds |1 pound Direct labor Hours 3 hours 5 hours Doggie Kittie Sales Sales volume 425 620 Selling price $160 $205 Expected inventory levels Beg Inv End Inv Direct Materials Plastic 290 410 Metal 70 65 Finished Product Doggie 10 30 Kittie Kat 25 10 Required А. Prepare the revenue budget В. Prepare the production budget in units
Expert Solution
Step 1

 Budget is a statement of income and expenses for a future period and is evaluated period to period.  A budget is also used to estimate the financial results of a company for future period.

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