FAYA Company's production budget projects required production units of 12,000 and 15,000 units in January and...
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FAYA Company's production budget projects required production units of 12,000 and 15,000 units in January and February respectively of the year 2022. Six pounds of raw materials are needed for each unit, and the estimated cost per pound is $5. Management desires an ending inventory equal to 25% of next month's materials requirements. The company has 10,000 pounds of raw materials in its December 31, 2021 ending inventory. Each unit required 2 hours of direct labor and the hourly wage rate is $8. Instructions: a. Prepare the direct materials budget for January 2022 b. Prepare the direct labor budget for January 2022 January January FAYA Company's production budget projects required production units of 12,000 and 15,000 units in January and February respectively of the year 2022. Six pounds of raw materials are needed for each unit, and the estimated cost per pound is $5. Management desires an ending inventory equal to 25% of next month's materials requirements. The company has 10,000 pounds of raw materials in its December 31, 2021 ending inventory. Each unit required 2 hours of direct labor and the hourly wage rate is $8. Instructions: a. Prepare the direct materials budget for January 2022 b. Prepare the direct labor budget for January 2022 January January
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