Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Grady manufactures medical supply kits. Projected production for the first months of production are ( hint: no beginning inventory for October ) : Oct production

Grady manufactures medical supply kits. Projected production for the first months of production are (hint: no beginning inventory for October):
Oct production 26,000
Nov production 29,000
There are four materials per kit at a cost of $1.35 each. The company desires to have enough materials on hand at month end to supply 20% of next month's production. Payments for material purchases are made 50% in the month purchased and the rest in the next month.
Each kit uses 0.45 hours of direct labor at $15.00 per hour, payable in the month worked. Indirect costs are fixed per month at $106,000 andhcludes $20,000 of depreciation, and are payable in the month incurred.
What should they budget for cash payments for production costs in October?
Enter as a whole number, no commas and no dollar signs.
Your Answer:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

12th Canadian Edition

0136889373, 9780136889373

More Books

Students also viewed these Accounting questions