Question
i will vote up, ineed this ASAP The company produces two different products: Product A and Product B. Direct materials inventory and finished goods inventory
i will vote up, ineed this ASAP
The company produces two different products: Product A and Product B. Direct materials inventory and finished goods inventory are costed using the first-in, first-out (FIFO) method.
There are two types of Direct Material: Material A and Material B.
The following data are available for the 2020 budget:
Direct materials:
Material A 7 BD per kg
Material B 10 BD per kg
Direct manufacturing labor 20 BD per hour.
Content of Each Product Unit
Product A Product B
Material A 12 kg 12 kg
Material B 6 kg 8 kg
Direct manufacturing labor 4 hours 6 hours
Products
Product A Product B
Expected sales in units 50,000 10,000
Selling price 600 BD 800 BD
Target ending inventory in units 11,000 500
Beginning inventory in units 1,000 500
Beginning inventory in dollars 384,000 BD 262,000 BD
Direct Materials
Material A Material B
Beginning Inventory 70,000 kg 60,000 kg
Target ending inventory 80,000 kg 20,000 kg
Required: What would be the production budget for this company? Show the calculations.
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