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4 Answer saved Marked out of 10.00 Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next
4 Answer saved Marked out of 10.00 Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 600 units February 1400 units March 2.000 units April 1800 units May 800 units 800 units June The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February March, and April. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. February March April Sales B 0 Total units needed 0 0 produc 0 b. Prepare a forecast of the units and cost of raw material that will be required for February March and April. The expected cost per pound of raw material is expected to be 12 in February, $2.30 in March, and $2.40 in April February March April Required raw material units Type here to search DELL O 829 1964 6:26 PM 113/02 The finished product requires 3 pounds of raw material and 10 hours of direct labor, a Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one half of the current month's production needs, january's beginning inventories are expected to conform to company policy a. Prepare a production budget for February, March, and April Note: Use a negative sign in your schedule to indicate that an amount is subtracted. February March April Sales 0 O B O 0 Total units needed 0 0 B 0 0 0 Units produced b. Prepare a forecast of the units and cost of raw material that will be required for February, March and April. The expected cost per pound of raw material in expected to be $2 in February, $2.30 in March, and $2.40 in April. February M April Required raw material units Cost of raw material purchases $ 05 05 c Prepare a direct labor budget tassuming a $12 per hour rate) for February, March, and April February March April Units produced 0 OLHS per unit 0 0 Total hours Cost per DUH 1 05 03 B Cost of 0.5 DS Type here to search DELL 8295 KXPM
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