(Production and related schedules) The Jansen Company manufactures and sells two products: plastic boxes and plastic trays....
Question:
(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
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780324180909
5th Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney