Barry Co manufactures two products, Alpha & Beta, and is preparing its budget for the Year...
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Barry Co manufactures two products, Alpha & Beta, and is preparing its budget for the Year 2020. Both products are made by same grade of labor, grade A. The company currently holds 1000 units of Alpha and 1200 units of Beta in inventory, but 450 of these units have just been discovered to have deteriorated in quality and must therefore be scrapped. Budgeted units of Alpha are 3,000 units and of Beta 4,000 units, provided that the company maintains finished goods inventories at a level equal to three month's sales. Grade A labor was originally expected to produce one unit of Alpha in 3 hours and one unit of Beta in 4 hours, at an hourly rate of $4.50 per hour. In discussions with trade union negotiations, however, it has been agreed that the hourly rate should be raised by 50 cents per hour, provided - that the times to produce Alpha and Beta are reduced by 20%. Required: Prepare the production budget and direct labor budget for 2020. Barry Co manufactures two products, Alpha & Beta, and is preparing its budget for the Year 2020. Both products are made by same grade of labor, grade A. The company currently holds 1000 units of Alpha and 1200 units of Beta in inventory, but 450 of these units have just been discovered to have deteriorated in quality and must therefore be scrapped. Budgeted units of Alpha are 3,000 units and of Beta 4,000 units, provided that the company maintains finished goods inventories at a level equal to three month's sales. Grade A labor was originally expected to produce one unit of Alpha in 3 hours and one unit of Beta in 4 hours, at an hourly rate of $4.50 per hour. In discussions with trade union negotiations, however, it has been agreed that the hourly rate should be raised by 50 cents per hour, provided - that the times to produce Alpha and Beta are reduced by 20%. Required: Prepare the production budget and direct labor budget for 2020.
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Particulars Alpha Units Beta Units Opening Stock 1000 1200 ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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