Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maurizio Inc. is a company which designs outstanding costumes, designed to be worn by the contestants on Dancing with The Stars. Below is the

image text in transcribed

Maurizio Inc. is a company which designs outstanding costumes, designed to be worn by the contestants on "Dancing with The Stars". Below is the expected (budgeted) data for the start of next year: Sales in units April 40 May June July Sales price per unit $240.00 60 $260.00 90 70 $310.00 $400.00 The desired ending inventory for finished goods (production) is 10% of next month's sales. The desired ending inventory for raw materials is 20% of the next month's raw material requirements. Raw material required for each unit of the product is 5 units. The cost of each unit of raw material is $50 per unit. Time required to assemble one (1) costume is 120 minutes. Workers are paid $25 per direct labour hour. Using the above information answer the following questions. Using the sales budget, calculate the budgeted sales for May. HINT: remember the entry rules! 15600.00 Complete the production budget. How many units will have to be produced in May to meet the requirements? HINT: What are the "Units to be produced" on the production budget for May? 66 Prepare the Direct Materials Purchases Budget. What will be the cost of May's production? HINT: On the Direct Materials Purchases Budget, what will be the "Total direct materials cost"? 17000.00 Prepare the Direct Labour Budget. What will be the total direct labour cost (rounded to the nearest dollar) for May? 2200.00

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M

5th Canadian edition

9781259105692, 978-1259103285

More Books

Students also viewed these Accounting questions

Question

How would you handle this situation?

Answered: 1 week ago