Exercise 20-3 Manufacturing: Production budget LO P1 2 Ruiz Co. provides the following sales forecast for the next four months Sales (unito) April 690 May 770 June July 810 720 eBook The company wants to end each month with ending finished goods inventory equal to 20% of next month's forecasted sales. Finished goods inventory on April 1 is 138 units. Prepare a production budget for the months of April, May, and June. Hint Print RUIZ CO. Production Budget For April, May, and June April Next month's budgeted sales (units) 770 Ratio of inventory to future sales 20% References May June 720 810 Required units of available production Units to be produced Exercise 20-4 Manufacturing: Direct materials budget LO P1 3 Zira Co. reports the following production budget for the next four months. April Production (units) May 700 July 646 June 678 658 eBook Each finished unit requires four pounds of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month's production needs. Beginning raw materials inventory for April was 1,034 pounds. Assume direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Hint Print References ZIRA CO. Direct Materials Budget For April, May, and June April May June Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Total budgeted direct materials cost 4 Exercise 20-5 Manufacturing: Direct labor budget LO P1 The production budget for Manner Company shows units to be produced as follows: July, 650: August, 710; and September, 570. Each unit produced requires three hours of direct labor. The direct labor rate is currently $15 per hour but is predicted to be $15.75 per hour in September Prepare a direct labor budget for the months July, August, and September eBook MANNER COMPANY Hint Direct Labor Budget For July, August, and September July August 650 710 Print September 570 units Budgeted production (units) los References Total labor hours needed Budgeted direct labor cost Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 5 Addison Co. budgets production of 2,800 units during the second quarter. Other information is as follows: Direct labor Variable overhead Pixed overhead Each finished unit requires 4 direct labor hours, at a cost of $8 per hour. Applied at the rate of $10 per direct labor hour. Budgeted at $590,000 per quarter. eBook 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 References Prepare a direct labor budget. ADDISON CO. Direct Labor Budget Second Quarter Units to be produced 2,800 units Total labor hours needed Budgeted direct labor cost Required Required 2 > Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 6 MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $13,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 3,180 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October Units to be produced 4,700 6,600 eBook November 6,100 Hint (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October (3) Prepare factory overhead budgets for September and October Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) Materials requirements per unit (lbs.) Materials needed for production (lbs) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs) Direct material cost per ib. Total budgeted direct materials Required Required 2 > Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 6 MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $13,000 per month. The company's policy is to end each month with direct materials Inventory equal to 30% of the next month's materials requirement. At the end of August the company had 3,180 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to be produced 6,600 eBook 4,700 6.100 Hint (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL hours required per unit" answers to one decimal place.). MCO Leather Direct Labor Budget For the Months of September and October September October Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 5 Addison Co budgets production of 2,800 units during the second quarter. Other information is as follows: Direct labor Variable overhead Fixed overhead Each finished unit requires a direct labor hours, at a cost of $8 per hour. Applied at the rate of $10 per direct labor hour. Budgeted at $590,000 per quarter. eBook 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 References Prepare a factory overhead budget. ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead