Jacobs manufactures two products: A and B. The firm predicts

Jacobs manufactures two products: A and B. The firm predicts a sales volume of 10,000 units for Product A and ending finished goods inventory of 2,000 units. These numbers for Product B are 12,000 and 3,000, respectively. Jacobs currently has 7,000 units of A in inventory and 9,000 units of B.

The following raw materials are required to manufacture these products:


Jacobs manufactures two products: A and B. The firm predicts


Product A requires 3 hours of cutting time and two hours of finishing time; B requires one hour and three hours, respectively. The direct labor rate for cutting is $10 per hour and $18 per hour for finishing.

Required:
a. Prepare a production budget in units
b. Prepare a materials usage budget in pounds and dollars
c. Prepare a direct labor budget in hours and dollars for ProductA

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