Question
A company plans to produce 450 units of the product it manufactures, and provides the following information: 1. In the manufacture of each product 2
A company plans to produce 450 units of the product it manufactures, and provides the following information:
1. In the manufacture of each product 2 meters of direct material are used, it is estimated that each meter costs $ 85 2. Making each product takes 3/4 hour, and an estimated rate of $ 60 per hour 3.The initial inventory of materials is 60 meters, and that of finished products is 50 units 4. A final inventory of 70 meters of material and 45 units of finished products is desired. 5. Indirect manufacturing costs are applied based on labor hours and a GIF rate of $ 50 has been determined. per hour of direct labor:
It asks: 1. Prepare the budget for the purchase of materials 2. Make the labor budget 3. Calculate the estimated unit cost of the product. 4. Create the ending inventory budget for the finished product.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started