Use the following information for the Exercises below. Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) Apr 11 600 540 May 680 670 June July 630 700 640 640 The company plans for finished goods inventory of 220 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $12 per hour. The company budgets variable overhead at the rate of $16 per direct labor hour and budgets fixed dverhead of $9.000 per month Exercise 20-9 Manufacturing: Direct labor and factory overhead budgets LO P1 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

Use the following information for the Exercises below. Ramos Co. provides the following sales forecast and production budget for the next four months. Sales (units) Budgeted production (units) Apr 11 600 540 May 680 670 June July 630 700 640 640 The company plans for finished goods inventory of 220 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 540 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.60 hours of direct labor at the rate of $12 per hour. The company budgets variable overhead at the rate of $16 per direct labor hour and budgets fixed dverhead of $9.000 per month Exercise 20-9 Manufacturing: Direct labor and factory overhead budgets LO P1 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

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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