Metal Parts inc. is preparing its monthly budget for 2019. The following estimates and information are...

 

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Metal Parts inc. is preparing its monthly budget for 2019. The following estimates and information are available. DL. Each unit requires S hours of direct labour and 16 pounds of metal to make. They have 5920 pounds of metal already in inventory. To prepare for supply disruptions of metal, the company likes to keep monthly ending inventory of metal high enough to meet the next two month's production requirements. In practice, their attempts at this might not always work out. • Direct labour costs $23 per hour. Accounts payable are paid 60% in the month of purchase and 40% in the following month. Each pound of metal costs $10.50 In December 2018, 6000 pounds of metal were purchased and 1,050 hours of Direct Labour worked. • Sales are estimated as follows: Month Amount November 2018 actual $270,000 December actual $240,000 $330,000 Jan 2019 Feb $180,000 $510,000 S600,000 $1,110,000 $1,770,000 Mar Apr May June $1,830,000 $1,110,000 $1,020,000 $660,000 $240,000 $180,000 $450,000 $480,000 $600,000 July Aug Sept Oct Nov Dec Jan 2020 Feb Mar Metal Parts Inc. keeps a minimum amount of the following: Cash A minimum of $2,000,000 Finished units Ending inventory equal to 25% of next month's sales requirements Inventory of finished units from December 2018 is equal to the targeted inventory policy. All sales are on account. Metal Parts inc. is preparing its monthly budget for 2019. The following estimates and information are available. DL. Each unit requires S hours of direct labour and 16 pounds of metal to make. They have 5920 pounds of metal already in inventory. To prepare for supply disruptions of metal, the company likes to keep monthly ending inventory of metal high enough to meet the next two month's production requirements. In practice, their attempts at this might not always work out. • Direct labour costs $23 per hour. Accounts payable are paid 60% in the month of purchase and 40% in the following month. Each pound of metal costs $10.50 In December 2018, 6000 pounds of metal were purchased and 1,050 hours of Direct Labour worked. • Sales are estimated as follows: Month Amount November 2018 actual $270,000 December actual $240,000 $330,000 Jan 2019 Feb $180,000 $510,000 S600,000 $1,110,000 $1,770,000 Mar Apr May June $1,830,000 $1,110,000 $1,020,000 $660,000 $240,000 $180,000 $450,000 $480,000 $600,000 July Aug Sept Oct Nov Dec Jan 2020 Feb Mar Metal Parts Inc. keeps a minimum amount of the following: Cash A minimum of $2,000,000 Finished units Ending inventory equal to 25% of next month's sales requirements Inventory of finished units from December 2018 is equal to the targeted inventory policy. All sales are on account.

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Metal Parts Inc Monthly Production Budget in units for the year 2019 Particulars Jan19 Feb19 Mar19 Apr19 May19 Jun19 Jul19 Aug19 Sep19 Oct19 Nov19 Dec19 Sales 330000 180000 510000 600000 1110000 17700... View the full answer