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Journey's Umbrella Factory. • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units • November 22,000 units • December 25,000 units • January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and • 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total amount of budgeted labor hours for the month of October for Journey's? O 3,680 direct labor hours O 92,000 direct labor hours O 2,208 direct labor hours O 220,800 direct labor hours

Journey's Umbrella Factory. • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units • November 22,000 units • December 25,000 units • January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) • Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and • 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total amount of budgeted labor hours for the month of October for Journey's? O 3,680 direct labor hours O 92,000 direct labor hours O 2,208 direct labor hours O 220,800 direct labor hours

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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Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units • November 22,000 units o December 25,000 units o January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total amount of budgeted labor hours for the month of October for Journey's? O 3,680 direct labor hours O 92,000 direct labor hours O 2,208 direct labor hours O 220,800 direct labor hours
Transcribed Image Text:Journey's Umbrella Factory • Sales Forecast for Q4 in 2022: Selling price = $20 per umbrella • October 20,000 units • November 22,000 units o December 25,000 units o January ¹23 21,000 units • Journey's will begin Q4 with 28,000 units in finished goods (FG) Journey's wants to end each month with 120% of the next month's projected sales in finished goodsinventory • Each umbrella requires 5 lbs. of direct material • Direct material costs $2.00 per lb. • Journey's will begin the 4th quarter with 10,000 lbs. of direct materials but would like • 20,000 lbs. of direct materials at the end of October, • 35,000 lbs. of direct materials at the end of November, and o 40,000 lbs. of direct materials at the end of December. • It takes 12 minutes of direct labor hours to make one umbrella • Workers earn $12 per hour Use the above information to answer the question below. QUESTION: What is the total amount of budgeted labor hours for the month of October for Journey's? O 3,680 direct labor hours O 92,000 direct labor hours O 2,208 direct labor hours O 220,800 direct labor hours
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