Zortek Corp. budgets production of 400 units in January and 200 units in February. Each finished unit requires five pounds of raw material Z, which costs $ 2 per pound. Each month’s ending inventory of raw materials should be 40% of the following month’s budgeted production. The January 1 raw materials inventory has 130 pounds of Z. Prepare a direct materials budget for January.
Answer to relevant QuestionsTora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $ 20 per hour. Prepare a direct labor budget for July.Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31. a. Beginning cash balance on ...Refer to information from Exercise 22-8. Each transmission requires 4 direct labor hours, at a cost of $ 12 per hour. Prepare a direct labor budget for the second quarter.In Exercise 22-8, Electro Company manufactures an ...Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $ 25 per unit. Sales (in units) are forecasted at 45,000 for January, 55,000 for February, and 50,000 for ...Merline, a one-product mail-order firm, buys its product for $ 75 per unit and sells it for $ 150 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.MERLINE ...
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