Claire Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end...
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Claire Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month finished-goods inventory is 10% of next month's sales. The company wants RM ending inventory to cover 20% of next month's needs. The frames each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The frames also require three hours of labor. The direct labor rate is $10 per hour. Prepare a production budget for frames for May. What is the total units to produce in May? How many pieces of trim are needed to cover May's production? If June's budgeted production = 6,000 frames. What is the desired inventory of Raw Materials (trim not frames) at the end of May? What was the beginning raw materials inventory for May (trim not frames)? Prepare a May materials usage budget for Claire Inc. if June's budgeted production = 6,000 frames. How many pieces of trim must be purchased in May? • Prepare a May materials usage budget for Claire Inc. if June's budgeted production = 6,000 frames. What is the total budgeted Raw Materials Cost for May? Give your answer in $ as a positive number. Hint: be sure you differentiate between frames (completed product) and pieces of trim (raw material). . . . Prepare a direct labor budget in hours and dollars for May. What is the total budgeted direct labor cost for May for Claire Inc.? Give your answer as a positive number. Claire Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month finished-goods inventory is 10% of next month's sales. The company wants RM ending inventory to cover 20% of next month's needs. The frames each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The frames also require three hours of labor. The direct labor rate is $10 per hour. Prepare a production budget for frames for May. What is the total units to produce in May? How many pieces of trim are needed to cover May's production? If June's budgeted production = 6,000 frames. What is the desired inventory of Raw Materials (trim not frames) at the end of May? What was the beginning raw materials inventory for May (trim not frames)? Prepare a May materials usage budget for Claire Inc. if June's budgeted production = 6,000 frames. How many pieces of trim must be purchased in May? • Prepare a May materials usage budget for Claire Inc. if June's budgeted production = 6,000 frames. What is the total budgeted Raw Materials Cost for May? Give your answer in $ as a positive number. Hint: be sure you differentiate between frames (completed product) and pieces of trim (raw material). . . . Prepare a direct labor budget in hours and dollars for May. What is the total budgeted direct labor cost for May for Claire Inc.? Give your answer as a positive number.
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Budgeted sales Add Desired ending inventory Less Beginning inventory Budgeted production 1 Desired e... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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