Question

The production budget is typically prepared before the direct materials budget. True or False True False

Answer 1

1) Yes, Production budget should be prepared before direct material budget

So above statement is true

2) Unit product cost

Direct material (5*4)	20
Direct labor (23*2.6)	59.8
Overhead (8*2.6)	20.8
Unit product cost	100.60

So answer is c) $100.60

3) Production Unit = 9400+(14000*40%)-(9400*40%) = 11240 Units

Raw material purchase = (11240*3)+(39720*20%)-(11240*3*20%) = 34920

Raw material cost = 34920*3 = 104760

So answer is c) $104760