Budgeted Direct Materials Cost Per Unit $15.00

Budgeted Direct Manufacturing Labor $10.00 per Unit

Budgeted Overall Production Cost per Unit $5.00

This is Next Year's Budgeted Data

Budgeted Selling Price per Unit $20.00

Budgeted Sales in Units 15000 units

Target Finish Inventory at 2500 UNITS

Target Initial Stock of Goods UNITS 1850 units

Target End Direct Materials Inventory at 8500 UNITS

Target Start Direct Material Inventory 6500 UNITS

Note: One unit of direct material is required to make in the production unit.

Solve the following questions with the above data using excel formulas

1. How many should be produced next year?

2. What is the budgeted dollar amount for direct material purchased for the next year?

3. What are the budgeted revenues for the next year?