Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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

Step: 3

blur-text-image

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

Performance Auditing A Measurement Approach

Authors: Ronell B. Raaum CGAP CGFM, Stephen L. Morgan CIA CGAP CFE CGFM

2nd Edition

0894136607, 9780894136603

More Books

Students also viewed these Accounting questions

Question

Why is succession planning important?

Answered: 1 week ago

Question

When did the situation become unable to be resolved? Why?

Answered: 1 week ago