Prepare a direct labor budget for each of the upcoming five years.Labor per unit = 8 The table displays data for a five-year production and sales forecast from 2023 to 2027. It includes the following categories: Budgeted Unit Sales, Stock at the End, Total Needs, Stock at the Beginning, and Required Production in Units.1. **Years**: 2023 through 2027, with a total column for cumulative values.2. **Budgeted Unit Sales**: - 2023: 4,000 units - 2024: 5,000 units - 2025: 6,000 units - 2026: 7,000 units - 2027: 8,000 units - Total: 30,000 units3. **Stock at the End**: - 2023: 1,000 units - 2024: 1,200 units - 2025: 1,400 units - 2026: 1,600 units - 2027: 1,800 units4. **Total Needs** (sum of budgeted sales and ending stock): - 2023: 5,000 units - 2024: 6,200 units - 2025: 7,400 units - 2026: 8,600 units - 2027: 9,800 units - Total: 31,800 units5. **Stock at the Beginning**: - 2023: 800 units - 2024: 1,000 units - 2025: 1,200 units - 2026: 1,400 units - 2027: 1,600 units6. **Required Production in Units**: - 2023: 4,200 units - 2024: 5,200 units - 2025: 6,200 units - 2026: 7,200 units - 2027: 8,200 units - Total: 31,000 unitsThis information offers insights into the anticipated sales and production adjustments needed over a five-year period to meet the projected demand while maintaining desired stock levels.

The direct labor budget is prepared to calculate the number of labor hours and total labor cost…

Years Budgeted unit sales Stock at the end Total needs 2023 4000 1000 5000 Stock at the beginning 800 Required production in units 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 7400 1200 6200 2026 7000 1600 8600 1400 7200 2027 Total 8000 1800 9800 1600 8200 30,000 1800 31,800 800 31,000

Years Budgeted unit sales Stock at the end Total needs 2023 4000 1000 5000 Stock at the beginning 800 Required production in units 4200 2024 5000 1200 6200 1000 5200 2025 6000 1400 7400 1200 6200 2026 7000 1600 8600 1400 7200 2027 Total 8000 1800 9800 1600 8200 30,000 1800 31,800 800 31,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

Prepare a direct labor budget for each of the upcoming five years.

Labor per unit = 8

The table displays data for a five-year production and sales forecast from 2023 to 2027. It includes the following categories: Budgeted Unit Sales, Stock at the End, Total Needs, Stock at the Beginning, and Required Production in Units.

1. **Years**: 2023 through 2027, with a total column for cumulative values.

2. **Budgeted Unit Sales**:
- 2023: 4,000 units
- 2024: 5,000 units
- 2025: 6,000 units
- 2026: 7,000 units
- 2027: 8,000 units
- Total: 30,000 units

3. **Stock at the End**:
- 2023: 1,000 units
- 2024: 1,200 units
- 2025: 1,400 units
- 2026: 1,600 units
- 2027: 1,800 units

4. **Total Needs** (sum of budgeted sales and ending stock):
- 2023: 5,000 units
- 2024: 6,200 units
- 2025: 7,400 units
- 2026: 8,600 units
- 2027: 9,800 units
- Total: 31,800 units

5. **Stock at the Beginning**:
- 2023: 800 units
- 2024: 1,000 units
- 2025: 1,200 units
- 2026: 1,400 units
- 2027: 1,600 units

6. **Required Production in Units**:
- 2023: 4,200 units
- 2024: 5,200 units
- 2025: 6,200 units
- 2026: 7,200 units
- 2027: 8,200 units
- Total: 31,000 units

This information offers insights into the anticipated sales and production adjustments needed over a five-year period to meet the projected demand while maintaining desired stock levels.

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