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Jims Company has the following budgeted sales in units: Budgeted Sales in Units October 8,600 units November 5,100 units December 4,400 units January 7,200 units
Jims Company has the following budgeted sales in units: Budgeted Sales in Units October 8,600 units November 5,100 units December 4,400 units January 7,200 units | Past experience has shown that the ending finished goods inventory for each month should be equal to 25% of the next month's expected unit sales. Every unit produced requires two direct labor hours to make and direct laborers are paid $18 per hour. Jims Company pays 62% of its direct labor in the same month the employee works, pays 27% of its direct labor in the month after the employee works, with the final 11% being paid two months after the employee works. Calculate the budgeted cash payments for direct labor for the month of December
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