Smith Company expects to sell 5,000 units Each unit requires: 2 pounds of direct material at $10
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Question:
Smith Company expects to sell 5,000 units
Each unit requires:
2 pounds of direct material at $10 per pound
2 direct labor hours at $12 per credit labor hour
The manufacturing overhead rate is $7 per direct labor hour.
The beginning inventories are as follows:
Direct materials: 1,000 pounds
Finished goods: 2,500 units
The planned ending inventories are as follows:
Direct materials: 2,ooo pounds
Finished Goods 1,500 units
Required:
1. What is the planned production?
2. What are the required direct material purchases for the planned production?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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