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Joes Truck 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
Joes Truck 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. Joes Truck 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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