25. LO.3 (Production and related schedules) Goldstein Inc. manufactures and sells plastic boxes and trays. Sales are projected to be evenly spread over the annual period. Estimated product sales and material needs for each unit of product follow.

BoxesTrays

Annual Sales42,00030,000

Material A2.0 Pounds1.0pounds

MaterialB1.5 pounds0.8 pounds

Direct Labor0.3 hours0.2 hour

Overhead is applied at a rate of $1.60 per direct labor hour.

Expected Beginning InventoriesDesired Ending Inventories

Material A1,780 pounds1,500 pounds

Material B5,000 pounds1,400 pounds

Boxes1,200 units1,800 units

Trays800 units650 units

Material A costs $0.05 per pound, and Material B costs $0.07 per pound.

a.Production schedule by product and in total

b.Purchases budget in units by raw material, in total, and in dollars

c.Direct Labor budget in hours by product, in total, and in dollars. The average direct labor wage rate is $9.50 per hour

d.Overhead to be charged to production by product and in total