Question

Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Cases 300 175 Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 Materials Inventory Cosi $ 12,000.00 $ 7,000.00 Oils (os.) Estimated materials inventory, August 1 Desired materials inventory, August 31 Cream Base (oz.) 250 1,000 290 360 Boffels (ou) 600 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January Instructions 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour.

Please Answer all parts of #5-7, I will rate.

Answer 1

Production Budget
Particulars	Units
Expected Demand	1500	Cases
Desired Closing Inventory	175	Cases
Total Units Required(Demand + Closing Inventory)	1675	Cases
Less : Beginning Inventory	300	Cases
Units to be produced	1375	Cases