Theingi M & T expects 1100 units to be sold during the month of August 2020. Selling price is expected to be
$240 per unit.
Two pounds of direct materials are budgeted per unit at a cost $2,00 per pound, $4,00 per unit. Three direct labor-hours are budgeted per unit at $7.00 per hour, per hour, $21.00 per unit. Variable overhead is budgeted at $8.00 per direct labor hour, $24.00 per unit. Fixed overhead is budgeted at $5,400 per month.
a) How much budgeted revenues for the month?
c) Each finished units requires 2 pounds of direct materials at a cost of $ 2.00 per pound. How much direct materials be needed to produce in August?
d) Desired ending direct material inventory equals 15% of the materials required to produce next month’s sales. September sales are forecasted to be 1600 units. What is the ending direct material inventory in August? ( Each finished unit requires 2 pounds of direct materials).
e) What is the beginning inventory in August?
f) How many are needed to be purchased in August?
g) Calculate the direct labor budget.
h) Calculate the direct variable and fixed over budget.
i) Calculate the unit cost of product produced (finished goods) in August.
j) Calculate the price of ending finished goods inventory in august.
k) Calculate the price of beginning finished goods inventory in August.
l) Calculated the budgeted gross profit for the month ended 31 August 2020.
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