The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after: Sales Ending Inventory September 30,000 units 8,000 units October40,000 units 20% of next month's sales November50,000 units 20% of next month's sales December60,000 units 20% of next month's sales January20,000 units 10% of next month's sales The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20. The multiperiod direct labor cost budget for the fourth quarter should show the total direct labor cost for the quarter to be a.$355,000 b.$365,000 c.$3,650,000 d.$375,000
The following are the estimated monthly sales and desired ending finished goods inventories for Blushing Company for the fourth quarter ending December 31, as well as the month immediately before and after: Sales Ending Inventory September 30,000 units 8,000 units October40,000 units 20% of next month's sales November50,000 units 20% of next month's sales December60,000 units 20% of next month's sales January20,000 units 10% of next month's sales The unit selling price is $25. Materials cost per unit is $5. Direct labor required per unit is 0.1 hour. The direct labor rate is $20. The multiperiod direct labor cost budget for the fourth quarter should show the total direct labor cost for the quarter to be a.$355,000 b.$365,000 c.$3,650,000 d.$375,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following are the estimated monthly
sales and desired ending finished goods
inventories for Blushing Company for the
fourth quarter ending December 31, as well
as the month immediately before and after:
Sales Ending Inventory
September 30,000 units 8,000 units
October40,000 units 20% of next month's
sales
November50,000 units 20% of next
month's sales
December60,000 units 20% of next
month's sales
January 20,000 units 10% of next month's
sales
The unit selling price is $25. Materials cost
per unit is $5. Direct labor required per unit
is 0.1 hour. The direct labor rate is $20.
The multiperiod direct labor cost budget
for the fourth quarter should show the total
direct labor cost for the quarter to be
a.$355,000
b.$365,000
c.$3,650,000
d.$375,000
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