12e Ch 6 Budgets Drisco(1) - Saved Layout References Review View Help Open in Desktop App Tell me what you want to do DE New Ro... 12 V AA BIUDAYA.. Ev Ev Av ACCT2113 12e Chapter 6 Budgeting The budget director of Duisce Chair Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for May of the current year is summarized as follows: a Estimated sales for May by sales territory: East: Product K-1:12,000 units at $45 per unit Product LS-5:16,000 units at $80 per unit Midwest: Product K-1:35,000 units at $40 per unit Product LS-5:42,500 units at $75 per unit West Product K-1:21,600 units at $48 per unit Product LS-5:23,400 units at $85 per unit b. Estimated inventories at May 1: Direct materials Material P.500 lbs Material Q:1.150 lbs. Material R 740 lbs Material S: 270 lbs Finished goods Times New Ro... V 12 V AA BI U DVA A ...v v Finished goods: Product K-13,000 units Product LS-52,700 units c. Desired inventories at May 31: Direct materials: Material P.710 lbs. Material Q:980 lbs. Material R: 720 lbs. Material S:340 lbs. Finished goods: Product K-13,100 units Product LS-52,000 units d. Direct materials used in production: In manufacture of Product K-1: Material Q:0.9 lbs. per unit of product Material R: 1.4 lbs. per unit of product Material S: 2.7 lbs. per unit of product In manufacture of Product LS-5 Material P 3.5 lbs, per unit of product Material Q 1.8 lbs per unit of product Material S:07 lbs. per unit of product Tell me what you want t veve ert Layout References Review View Help Open in Desktop App imes New Ro... v 12 v A BI U ev Av A e. Anticipated purchase price for direct materials Material P:$1.80 per lb. Material Q:$2.50 per lb. Material R:$4.00 per lb. Material S:50.60 per lb. f. Direct labor requirements: Product K-1: Department 10:5 hour at $9 per hour Department 30:25 hour at $11 per hour Product LS-5: Department 10:3 hour at 9 per hour Department 20:85 hour at $12 per hour Instructions 1. Prepare a sales budget for May 2. Prepare a production budget for May 3. Prepare a direct materials purchases budget for May + Prepare a direct labor cost budget for May