b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. February March April Required raw material units 0 0 0 Cost of raw material purchases $ 0 $ 0 $ 0 February March April 0 0 c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. Units produced 0 DLHS per unit 0 0 0 Total hours 0 0 0 Cost per DLH $ 0 $ 0 $ 0 Cost of DL $ 0 $ 0 $ 0 Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 300 units February 700 units March 1,000 units April 900 units 400 units May June 300 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. February March April Sales 0 0 0 ΕΙ 0 0 0 Total units needed 0 0 0 BI 0 0 0 Units produced 0 0 0
b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. February March April Required raw material units 0 0 0 Cost of raw material purchases $ 0 $ 0 $ 0 February March April 0 0 c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. Units produced 0 DLHS per unit 0 0 0 Total hours 0 0 0 Cost per DLH $ 0 $ 0 $ 0 Cost of DL $ 0 $ 0 $ 0 Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 300 units February 700 units March 1,000 units April 900 units 400 units May June 300 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. February March April Sales 0 0 0 ΕΙ 0 0 0 Total units needed 0 0 0 BI 0 0 0 Units produced 0 0 0
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...
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Transcribed Image Text:b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is
expected to be $2 in February, $2.30 in March, and $2.40 in April.
February
March
April
Required raw material units
0
0
0
Cost of raw material purchases $
0 $
0 $
0
February
March
April
0
0
c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April.
Units produced
0
DLHS per unit
0
0
0
Total hours
0
0
0
Cost per DLH
$
0 $
0 $
0
Cost of DL
$
0 $
0 $
0
Transcribed Image Text:Production, direct materials, and direct labor budgets
Gerrad Manufacturing has projected sales of its product for the next six months as follows:
January 300 units
February 700 units
March 1,000 units
April
900 units
400 units
May
June
300 units
The finished product requires 3 pounds of raw material and 10 hours of direct labor.
Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the
current month's production needs. January's beginning inventories are expected to conform to company policy.
a. Prepare a production budget for February, March, and April.
Note: Use a negative sign in your schedule to indicate that an amount is subtracted.
February
March
April
Sales
0
0
0
ΕΙ
0
0
0
Total units needed
0
0
0
BI
0
0
0
Units produced
0
0
0
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