Question
ABC Company produces water pumps. The unit sales for the first four months of the year for this product are as follows: Unit Sales: January
ABC Company produces water pumps. The unit sales for the first four months of the year for this product are as follows:
Unit Sales:
January 162,000
February 198,000
March 180,000
April 216,000
Company maintains ending inventory for each month at 25% of next month's sales. However, at the beginning of January, due to greater sales in December than anticipated, the beginning inventory for January is 18,900
Required:
a) Compute the total number of units that should be produced for the months of January, February and March. Find the Total units to be produced for the 1st quarter
b) ABC Company makes wallets and the planned production in units for the first three months of the following year are:
January 21,900
February 20,500
March 25,100
Additional information is as follows:
Average wage per hour $21.60
Direct labor hour for each wallet 0.45
What is the total direct labour budget for the first quarter
c) Compute the total direct labour budget for the first quarter of the following year.
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