Current Attempt in Progress

Working in the production area of a manufacturing company is right where Joseph feels at home. Several of his family

members had worked in similar environments throughout their careers, and he loves the idea of building something

that consumers will enjoy. While others on his team passed on the chance to build the budget, Joseph really enjoys

seeing how the pieces fit together like a puzzle. His task this month: put the three key production budgets together,

culminating in a COGS budget for his division. He gathers the following information in order to get to work.

$,$ Budgeted production in units for October is $1,700$; for November, $1,600$; and for December, $2,000.$

$,$ Every unit requires $2$ pounds of direct material. The company desires an ending direct materials inventory of

$25\%$ of the following month's production needs. October $1$ DM Inventory is budgeted to be $80$ pounds.

Every unit requires $1\mathrm{.}40$ DL hours.

MOH is allocated based on DL costs, at a budgeted variable rate of $$0\mathrm{.}25$ per dollar of DL cost$.$

Budgeted monthly Fixed MOH costs are supervisors' salaries of $$2,000,$ depreciation of $$1,800$ and property

taxes and insurance of $$900.$

$,$ There is no budgeted beginning or ending WIP Inventory for October.

October $1$ FG Inventory is budgeted to be $100$ units at an estimated total cost of $$7,300($per management

estimate$).$

Budgeted FG Inventory on October $31$ is $160$ units.