Question: Question 4: (10 marks) (B1, C3) Part A: (6 marks) Ahlia, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production
Question 4: (10 marks) (B1, C3) Part A: (6 marks) Ahlia, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next three months is as follows: April May June Budgeted production 21,000 22,000 24,000 The company wants to maintain monthly ending inventories of plastic equal to 25% of the following month's budgeted production needs. The cost of plastic is $2.20 per pound. Instructions: Prepare a direct materials purchases budget for the month of May. Part B: (4 marks) Zain Company goes through two departments in the production process. Each product requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B. Assuming the amount budgeted to be produced in January is 30,000 units, what is the budgeted direct labor cost for January
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