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Can you please include formulas to use Kaitlyn Company, a manufacturer, predicts sales of 11,200 units in January, 10,400 units in February, 14,400 units in
Can you please include formulas to use
Kaitlyn Company, a manufacturer, predicts sales of 11,200 units in January, 10,400 units in February, 14,400 units in March, and 15,800 units in Apri.. The company wants each month's ending finished goods inventory to equal 40% of next month's predicted unit sales. Beginning finished goods inventory for January is 4,480 units. Each unit of finished goods requires 0.40 pounds of direct materials at a cost of $12.00 per pound, and 5.0 hours of direct labor at a cost of $20 per hour: Additionally, the company wants each month's ending raw materials inventory to equal 30% of next month's budgeted production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget Kaitlyn Company Budget Assumptions For the months of January. February, and March 2023 Kaitlyn Company Sales Budget For the months of January, February, and March 2023 \begin{tabular}{l} For the months of January, February, and March 2023 \\ \hline Judgeted sales (units) January \end{tabular} Selling price per unit Total budgeted sales (dollars) Kaitlyn Company Production Budget For the months of January, February, and March 2023 Next month's budgeted sales (units) Ratio of inventory to future month's sales Budgeted ending inventory (units) Add: Budgeted sales (units) Required units of available production Deduct Beginning inventory (units) Budgeted units to produce Kaitlyn Company Direct Materials Budget For the months of January, February, and March 2023 Budgeted units to produce Materials requirements per unit Materials needed for production (pounds) Add: Budgeted ending inventory (pounds) Total materials requirements (pounds) Deduct Beginning inventory (pounds) Materials to be purchased (pounds) Material price per pound Total budgeted cost of direct materials purchases Kaitlyn Company Direct Labor Budget For the months of January, February, and March 2023 Budgeted units to produce Direct labor requirements (hours) per unit Total direct labor hours needed Direct labor rate (per hour) Total budgeted direct labor cost Step by Step Solution
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