Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master
Question:
Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020.
January
February
March
April
May
Estimated unit sales10,50011,2008,2008,8009,000Sales price per unit$50.30$47.00$47.00$47.00$47.00Direct labor hours per unit2.22.21.61.61.6Wage per direct labor hour$8$8$8$9$9
Lowell has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.
Lowell expects to begin the year with 18,340 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 70% of the second following month's sales.
Prepare production budget for Lowell Company by month and for the first quarter of the year.
LOWELL COMPANY
Production Budget
For the Year Ending March 31, 2020
For the Quarter Ending March 31, 2020
March 31, 2020
Jan
Feb
Mar
Total
Required Production Units
Direct Materials Per Unit
Expected Unit Sales
Direct Materials Purchases
Beginning Direct Materials
Total Materials Required
Total Required Units
Desired Ending Finished Goods Unit
Beginning Finished Goods Unit
Desired Ending Direct Materials
Add
Less
:
Expected Unit Sales
Beginning Direct Materials
Total Materials Required
Beginning Finished Goods Unit
Required Production Units
Total Required Units
Direct Materials Purchases
Desired Ending Direct Materials
Desired Ending Finished Goods Unit
Direct Materials Per Unit
Beginning Finished Goods Unit
Beginning Direct Materials
Desired Ending Direct Materials
Direct Materials Per Unit
Total Materials Required
Total Required Units
Desired Ending Finished Goods Unit
Direct Materials Purchases
Required Production Units
Expected Unit Sales
Add
Less
:
Required Production Units
Direct Materials Purchases
Expected Unit Sales
Beginning Finished Goods Unit
Beginning Direct Materials
Direct Materials Per Unit
Total Materials Required
Desired Ending Direct Materials
Desired Ending Finished Goods Unit
Total Required Units
Desired Ending Finished Goods Unit
Total Required Units
Direct Materials Per Unit
Total Materials Required
Direct Materials Purchases
Desired Ending Direct Materials
Expected Unit Sales
Required Production Units
Beginning Finished Goods Unit
Beginning Direct Materials
LINK TO TEXT
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Prepare direct labor budget for Lowell Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours.(Round Direct labor hours per unit answers to 1 decimal place, e.g. 52.7.)
LOWELL COMPANY
Direct Labor Budget
For the Quarter Ending March 31, 2020
March 31, 2020
For the Year Ending March 31, 2020
Jan
Feb
Mar
Total
Total Required Direct Labor Hours
Direct Labor Time (Hours) Per Unit
Cost Per Pound
Direct Materials Per Unit
Beginning Materials Inventory
Units to be Produced
Desired Ending Inventory
Direct Labor Cost Per Hour
Total Pounds Required for Production
Total Cost of Direct Materials Purchases
Direct Materials Purchases
Total Direct Labor Cost
Total Materials Required
Direct Materials Per Unit
Units to be Produced
Cost Per Pound
Beginning Materials Inventory
Direct Labor Cost Per Hour
Total Materials Required
Total Required Direct Labor Hours
Total Cost of Direct Materials Purchases
Desired Ending Inventory
Total Pounds Required for Production
Total Direct Labor Cost
Direct Materials Purchases
Direct Labor Time (Hours) Per Unit
Desired Ending Inventory
Total Cost of Direct Materials Purchases
Direct Materials Per Unit
Total Direct Labor Cost
Total Materials Required
Cost Per Pound
Total Required Direct Labor Hours
Direct Materials Purchases
Direct Labor Cost Per Hour
Total Pounds Required for Production
Direct Labor Time (Hours) Per Unit
Units to be Produced
Beginning Materials Inventory
Total Required Direct Labor Hours
Units to be Produced
Beginning Materials Inventory
Total Materials Required
Total Pounds Required for Production
Cost Per Pound
Desired Ending Inventory
Direct Labor Cost Per Hour
Direct Labor Time (Hours) Per Unit
Direct Materials Per Unit
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Total Direct Labor Cost
$
$
$
Desired Ending Inventory
Beginning Materials Inventory
Total Required Direct Labor Hours
Total Pounds Required for Production
Direct Labor Cost Per Hour
Units to be Produced
Cost Per Pound
Total Cost of Direct Materials Purchases
Total Materials Required
Direct Labor Time (Hours) Per Unit
Direct Materials Per Unit
Direct Materials Purchases
Total Direct Labor Cost
$
$
$
$
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