Chapter $22$ Practice Problem #$1$

Selected information concerning sales and production for Purple Company for the month of August $2023$ are:

Red Widget $45,600$ units at $$50$ per unit

Green Widget $20,110$ units at $$25$ per unit

Material A $80,000$ lbs Red Widget $8,200$ units @ $$10/$unit $82,000$$

Material B $30,000$ lbs Green Widget $3,170$ units @ $$5/$unit $15,850$$

Total Finished Goods $97,850$

Material A $75,000$ lbs Red Widget $12,500$ units @ $$10/$unit $125,000$$

Material B $26,500$ lbs Green Widget $22,000$ units @ $$5/$unit $110,000$$

Total Finished Goods $235,000$

There are no desired Work in Process Inventories for August $31,2023$

Red Widget Green Widget

Material A $1\mathrm{.}25$ lb per unit $2\mathrm{.}95$ lb per unit

Material B $\mathrm{.}85$ lb per unit $\mathrm{.}90$ lb per unit

Material A $4\mathrm{.}75$$

Material B $3\mathrm{.}95$$

Cutting Department Sewing Department

Red Widget $0\mathrm{.}65$ DLH per unit $1\mathrm{.}55$ DLH per unit

Green Widget $2\mathrm{.}0$ DLH per unit $2\mathrm{.}75$ DLH per unit

Direct Labor Rate $18\mathrm{.}50$$ $22\mathrm{.}00$$

Estimated Inventories, August $1,2023$:

Direct Materials Finished Goods

Estimated Sales

Direct Labor Requirements

Cost per pound for Direct Materials

Direct Materials Used in Production

Estimated Inventories, August $31,2023$:

Direct Materials Finished GoodsChapter $22$ Practice Problem #$1$

Selected information concerning sales and production for Purple Company for the month of August $2023$ are:

There are no desired Work in Process Inventories for August $31,2023$