7 Selva Inc, makes keyboards for tablets, and packages them in crates containing 50 keyboards per crate 8 Planned production in units for the first three months of the coming year is: 9 January 43,800 10 February 41,000 11 March 50,250 12 13 Each keyboard requires two litres of chemicals and one plastic crate Company policy requires that ending inventories of raw materials for each month be 15 percent of the next month's production needs 14 That policy was met for the ending inventory of December in the prior year. The cost one litre of chemicals is $0.50. The cost of one crate is $1.60 15 16 Each crate takes 03 direct labour hours. The average wage is $18 per hour. 17 13 Required: 19 20 1. Calculate the ending inventory of chemicals in litres for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January? 21 2. Prepare a direct materials purchases budget for chemicals for the months of January and February 22 3. Calculate the ending Inventory of crates for December of the prior year, and for lanuary and February. What is the beginning inventory of crates for January? 23 4. Prepare a direct materials purchases budget for crates for the month of January and February 24 S. Prepare a direct labour budget for the months of January, February, and March, as well as the for the first quarter. 23 26 CLEARLY IDENTIFY WHICH PART OF THE QUESTION YOU ANSWERING OR MARKS WILL BE DEDUCTED 27 28 29 Answer 30 1 32 33 34 35 36