Bags, Inc. manufactures leather bags with 3 zipper-type pockets. The company outsources the zippers at P8 per unit. Each bag requires 5 direct labor hours to produce at a rate of P10 per hour. Budgeted sales of bags for the first quarter of the year and the first month of the following are as follows:

January 900 units

February 1,000 units

March 1,500 units

April 1,800 units

Inventory data are as follows:

January 1: Leather bags 360

Zipper 1,620

End of each month:

Leather bags - 40% of the following month's budgeted sales

Zipper - 60% of the following month's production requirement

What is the budgeted production of leather bags for the first quarter?

 

Answer rating: 100% (QA)

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