Power Inc. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘B’. The following information is gi...
Power Inc. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘B’. The following information is given for the year 2019: -
The standard direct materials and direct labor used for each product is as follows:
‘A’ ‘B’
Material 1 10 units 8 units
Material 2 5 units 9 units
Direct Labor 10 hours 15 hours
Standard direct materials and direct labor costs:
(USD)
Material 1 8.20 per unit
Material 2 17.00 per unit
Direct Labor 14.00 per hour
Other important data is as follows for the year 2019:
Direct materials
Material 1 Material 2
Opening inventory (units) 9,000 8,500
Closing inventory required (units) 10,000 2,000
Finished products
‘A’ ‘B’
Forecast sales (units) 8,500 1,600
Selling price per unit USD500 USD660
Ending inventory required (units) 2,000 100
Beginning inventory (units) 200 90
Question: Prepare the following budgets for the year 2019: -
Sales budget , Production budget , Direct material usage budget , Direct material (purchase budget) , Direct labor budget
I have the mapped out the answers but just want to verify whether my answer is correct coz i would like to ensure my understanding of this subject is accurate.
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Power Inc. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘B’. The following information is gi...
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I would like to cross check my answer to the following question which i did to...
I would like to cross check my answer to the following question which i did to enhance my understanding: Power Inc. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘B’. The following information is given for the year 2019: - The standard direct materials and direct labor used for each product is as follows: ‘A’ ‘B’ Material 1 10 units 8 units Material 2 5 units 9 units Direct Labor 10 hours ...
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