ACCOUNTING PRINCIPLES II MANAGERIAL CHAPTER 7 TBC- BUDGETING Selected information concerning sales and production for Moore Company for July, 2016, are summarized as follows: a. Estimated sales: Product K: 40,000 units at $30 per unit Product L 20,000 units at $65 per unit b. Estimated inventories, July 1, 2016: Material A: 4,000 lbs. Material B 3,500 lbs. There were not work in process inventories estimated for July 1, 2016. Product K: Product L: 3,000 units at $17 per unit 2,700 units at $35 per unit 51,000 94,500 c. Desired inventories at July 31, 2016 Material A: Material B: 3,000 lbs. 2,500 lbs. Product K: Product L: 2,500 units at $17 per unit 2,000 units at $35 per unit 42,500 70,000 There were no work in process inventories desired for July 31, 2016. d. Direct materials used in production Material A: Material B: Product K 0.7 lb. per unit 1.2 lbs. per unit Product L 3.5 lbs. per unit 1.8 lbs per unit e. Unit costs for direct materials Material A: $4.00 per lb. Material B: $%2.00 per lb f. Direct labor requirements Product K: Product L: Department 1 0.4 hr. per unit 0.6 hr. per unit Department 2 0.15 hr. per unit 0.25 hr. per unit Department 1 $12.00 per hr Department 2 $16.00 per hr 9 Direct labor rate