The production department of Harrison Company has submitted the following forecast of units to be produced by quarter for the upcoming year 2017: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced 7,000 8,000 6,000 5,000 Additional information: 1. The beginning inventory for the first quarter is budgeted to be 1,400 units. 2. Each unit requires 2 kg of material X that costs RM1.40 per kg. 3. Management desires to end of each quarter with an inventory of material X equal to 10% of the following quarter's production needs. 4. The desired ending inventory of material X for the fourth quarter is 1,500 kg. 5. Each unit requires 0.60 direct labour hours and direct labours are paid RM14 per hour. Required: a. Prepare the company's direct materials budget for each quarter. b. Prepare the company's direct labour budget for each quarter.

The production department of Harrison Company has submitted the following forecast of units to be produced by quarter for the upcoming year 2017: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units to be produced 7,000 8,000 6,000 5,000 Additional information: 1. The beginning inventory for the first quarter is budgeted to be 1,400 units. 2. Each unit requires 2 kg of material X that costs RM1.40 per kg. 3. Management desires to end of each quarter with an inventory of material X equal to 10% of the following quarter's production needs. 4. The desired ending inventory of material X for the fourth quarter is 1,500 kg. 5. Each unit requires 0.60 direct labour hours and direct labours are paid RM14 per hour. Required: a. Prepare the company's direct materials budget for each quarter. b. Prepare the company's direct labour budget for each quarter.

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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