a) | |
Sales Revenue (8,000 units + 20,000 units = 28,000 units * $55 per unit) | $1,540,000 |
b) | |
Estimated sales in units | 28,000 |
Add: Desired ending invetory in units | 1,000 |
Less: Beginning inventory in units | 2,500 |
Units required to produce | 26,500 |
c) | |
Pounds of raw materials required to produce (26,500 units * 2 pounds) | 53,000 |
Add: Ending inventory of raw materials in pounds | 4,000 |
Less: Beginning inventory of raw materials in pounds | 3,000 |
Pounds of raw materials required to purchase (a) | 54,000 |
Cost per pound of raw materials (b) | $3 |
Cost of raw materials purchased (a*b) | $162,000 |
d) | |
Units required to produce (a) | 26,500 |
Direct labor hour required per unit (b) | 1.5 |
Total direct labor hours required (c = a*b) | 39,750 |
Cost per direct labor hour (d) | $16 |
Cost of direct labor (c*d) | $636,000 |
e) | |
Fixed manufacturing overheads | $60,000 |
Add: Variable manufacturing overhead (39,750 hours * $2 per hour) | $79,500 |
Total manufacturing overheads | $139,500 |
Budget Preparation Reeves Company is preparing its master budget for July. Use the given estimates to...
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