Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is: January 45,000 February 50,000 March 65,000 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18.60 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Labor Budget For the Coming First Quarter Direct Labor Budget: January February March Total Units to be produced Direct labor hrs per unit Total direct labor hrs Wage rate Direct labor cost

Patrick Inc. makes industrial solvents. Planned production in units for the first three months of the coming year is: January 45,000 February 50,000 March 65,000 Each drum of industrial solvent takes 0.3 direct labor hours. The average wage is $18.60 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Patrick Inc. Direct Labor Budget For the Coming First Quarter Direct Labor Budget: January February March Total Units to be produced Direct labor hrs per unit Total direct labor hrs Wage rate Direct labor cost

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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29) Sales for December are expected to be 36,000 units and Production is expected to be 37,000 units. You pay your Direct Labor workers $24 per hour and each unit requires 2 hours of labor and 3 hours of machine time. Overhead costs are $5 per hour of which $1 per hour is depreciation. What will be your direct labor costs for the month of December?
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The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 14,000 Units to be produced In addition, 24,500 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $6,600. Req 1 and 2 Each unit requires 7 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 7,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40 % in the following quarter. Each unit requires 0.40 direct labor-hours and direct laborers are paid $15.50 per hour. Req 3 2nd Quarter 17,000 Required: 1. and 2 Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each…