Facey Production manufacture ceramic tile

15 points

Expected Production

Expected sales

May

1,580 tiles

4,000 tiles

June

2,000 tiles

3,500 tiles

Each tile requires 3 kilograms of clay mix needed to make one tile. The company's policy to maintain clay mix at the end of each month equal to 15% of the next month's production needs and to maintain a finished goods inventory at the end of each month equal to 25% of next month's anticipated production needs The cost of clay mix is $0.50 clay mix. At April 30 1,000 clay mix were on hand and 1,500 tiles. It takes 2 hours to make a tile and wages is $16 per hour Prepare a direct material purchases budget and a direct labour budget for May (15 marks)

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Question 19 15 points Save Answer Facey Production manufacture ceramic tile Expected Production Expected sales May 1,580 tiles 4,000 tiles June 2,000 tiles 3,500 tiles Each tile requires 3 kilograms of clay mix needed to make one tile. The company's policy to maintain clay mix at the end of each month equal to 15% of the next month's production needs and to maintain a finished goods inventory at the end of each month equal to 25% of next month's anticipated production needs. The cost of clay mix is $0.50 clay mix. At April 30 1,000 clay mix were on hand and 1,500 tiles. It takes 2 hours to make a tile and wages is $16 per hour. Prepare a direct material purchases budget and a direct labour budget for May - (15 marks)