(Production and related schedules) The Jansen Company manufactures and sells two products: plastic boxes and plastic trays. Estimated needs for a unit of each are Boxes Trays Material A 2 pounds 1 pound Material B 4 pounds 4 pounds Direct labor 2 hours 2 hours Overhead is applied on the basis of $2 per direct labor hour.

The estimated sales by product for 2000 are:

Boxes Trays Sales 42,000 24,000 The beginning inventories are expected to be as follows:

Material A 4,000 pounds Material B 6,000 pounds Boxes 1,000 units Trays 500 units 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