problem 4

problem 5

Use the following information to complete Problem 4 and Problem 5 (Problem 5 is on the next page) Suppose a company has created the following production budget: Month February March April Budgeted Production 45,000 units 75,000 units 60,000 units 80,000 units May Each unit produced requires 4 pounds of direct materials. Management wants to have a direct materials inventory on hand at the end of each month that is 50% of the following month's production needs. January's ending inventory of direct materials is expected to be 90,000 pounds. It takes 45 minutes for an assembly line worker to produce each unit, and the assembly line workers are paid $20 per hour. Problem 4 (10 points) How many pounds of direct materials should the company plan to purchase in February, March, and April? Problem 5 (7 points) What should the company expect the total cost of direct labor to be in February, March, and April