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Question
Clic, Inc. provides the following data for the next four months:
| March | April | May | June | July | |
| Unit Sales | 500 | 580 | 530 | 600 | |
| Ending Raw Materials Inventory | 663 lbs. | ||||
| Ending Finished Goods Inventory | 174 units |
Desired ending inventory:
Raw materials = 30% of next month's production needs
Finished goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
Required:
a. Calculate the budgeted production for April and May.
b. Calculate the amount of purchases of raw materials in pounds for April and May.
c. Calculate the cost of direct labor for May.
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
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Q:
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Q:
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.8264
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Q:
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The process of restating future cash flows in terms of their present value is called _____________________.
Q:
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B. A monthly period separated into daily budgets.
C. A quarterly period separated into weekly budgets.
D. An annual period separated into weekly budgets.
E. An annual period separated into quarterly and monthly budgets.
Q:
The most useful budget figures are developed:
A. From the top down.
B. From the bottom up following a participatory process.
C. Solely by the budget committee.
D. By the CEO.
E. After the accounting period has begun.
Q:
Preparing a master budget is usually the responsibility of:
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B. The marketing department.
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E. Lower level management.
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Part of the cash budget is based on information drawn from the capital expenditures budget.
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The budgets within the master budget must be prepared in a definite sequence as dictated by GAAP.
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The ______________________________ shows the budgeted costs for direct materials, direct labor, and overhead based on the budgeted production volume from the production budget.
Q:
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107,000 112,400 Operating expenses: Payroll
13,600 14,280 Advertising
5,400 5,700 Rent
1,500 1,500 Depreciation
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40,000 Bank loan payable
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(4) A minimum cash balance of $40,000 is required at the end of each month.
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Q:
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B. It is not permitted to be used for financial reporting.
C. It is not permitted to be used for tax reporting.
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E. It requires only variable costs to be treated as product costs.
Q:
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