(Production and related schedules) The Walker Company manufactures and sells two products: plastic boxes and plastic trays. Estimated needs for a unit of each are

The desired inventories are one month’s production requirements, assuming constant sales throughout the year.
Prepare the following information:

a. Production schedule

b. Purchases budget in units

c. Direct labor budget in hours

d. Overhead to be charged to production.LO1

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BOXES TRAYS Material A Material B Direct labor 2 pounds 1 pound 4 pounds 4 pounds 2 hours 2 hours Overhead is applied on the basis of $2 per direct labor hour. The estimated sales by product for 1997 are: Sales BOXES 42,000 TRAYS 24,000 The beginning inventories are expected to be as follows: Material A 4,000 pounds Material B 6,000 pounds Boxes Trays 1,000 units 500 units