Production: The management has the following unit sales projections for 2021. Quarter 1 Quarter 2 1500 2000 Quarter 3 950 Quarter 4 950 Management desires to maintain the ending finished goods inventories at 30% of the next quarter's budgeted sales volume. Ending inventory of finished goods at December 31,2021, will be 320 units.
Production: The management has the following unit sales projections for 2021. Quarter 1 Quarter 2 1500 2000 Quarter 3 950 Quarter 4 950 Management desires to maintain the ending finished goods inventories at 30% of the next quarter's budgeted sales volume. Ending inventory of finished goods at December 31,2021, will be 320 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
D3- Please solve this question with all steps. Thanks
Transcribed Image Text:Meera Company is preparing its master budget for 2021. Relevant data pertaining to its production,
direct materials and direct labor budgets are as follows.
Production: The management has the following unit sales projections for 2021.
Quarter 1
1500
Quarter 2
2000
Quarter 3
950
Quarter 4
950
Management desires to maintain the ending finished goods inventories at 30% of the next quarter's
budgeted sales volume. Ending inventory of finished goods at December 31,2021, will be 320 units.
Direct materials: Each unit requires 45 pounds of raw materials at a cost of OMR 15.5 per pound.
Management desires to maintain raw materials inventories at 30% of the next quarter's production
requirements. Assume that the ending inventory of raw material on December 31,2021 (Q4) is 1530
pounds. The estimated beginning inventory of raw material on January 1,2021(QI) is 1490.
Direct labor: Production of a single product requires 3 hours of time by employees. The employees
are paid OMR 15.300 per hour.
Requirements:
3. Prepare a direct labor budget by quarters for 2021.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education