MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of August the company had 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare direct materials budgets for September and October. Inite to produce 20 Required 3 000 DOO MCO Leather Direct Materials Budget O < Prev A September 4 500 4 of 5 :8 October 7 000 Next > DII Check my work F10 ( F11 F12

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's direct materials requirement. At the end of August the company had 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare direct materials budgets for September and October. Inite to produce 20 Required 3 000 DOO MCO Leather Direct Materials Budget O < Prev A September 4 500 4 of 5 :8 October 7 000 Next > DII Check my work F10 ( F11 F12

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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Similar questions

Compare and contrast a job order costing system and a process costing system. Give examples of situations in which it would be appropriate to use each system as well as explain why?
Describe the types of manufacturing overhead.
Provide a description of how the job order costing and process costing methods are applied to determine accurate cost data.
Distinguish between the qualities and aims of cost accounting, as well as between the nature and significance of a task cost sheet.
In a process costing system, the entry to record the use of direct materials in production would include a: a) debit to finished goods inventory b) debit to materials inventory c) debit to work in process inventory d) credit to finished goods inventory
Explain the ethical considerations to be taken care of while maintaining cost records.
Discuss the Step by Step Procedure involve in process Costing including the content of Production Report