Name:

Donavin essak

Donavin Company, a manufacturer, predicts sales of $6,750$ units in January, $6,300$ units in February, $8,550$ units in March, and $9,400$ units in April. The company wants each month's ending finished goods inventory to equal $50\%$ of next month's predicted unit sales. Beginning finished goods inventory for January is $3,375$ units. Each unit of finished goods requires $0\mathrm{.}45$ pounds of direct materials at a cost of $$11\mathrm{.}00$ per pound, and $3\mathrm{.}5$ hours of direct labor at a cost of $$21$ per hour.

Additionally, the company wants each month's ending raw materials inventory to equal $20\%$ of next month's budgeted production.

Prepare a sales budget, a production budget, a direct materials and a direct labor budget.

Donavin Company

Budget Assumptions

For the months of January, February, and March $2024$

$\backslash$table$[[,$January,February,March$],[$Selling price per unit,$$160,$$$160,$$$160$

Donavin Company

Production Budget

For the months of January, February, and March $2024$

Donavin Company

Direct Materials Budget

For the months of January, February, and March $2024$

Budgeted units to produce

Materials requirements per unit

Materials needed for production $($pounds$)$

Add: Budgeted ending inventory $($pounds$)$

Total materials requirements $($pounds$)$

Deduct: Beginning inventory $($pounds$)$

Materials to be purchased $($pounds$)$

$\backslash$table$[[$January$,$March$],[,,],[,,],[,,],[,,],[,,],[,,]]$

Material price per pound

Total budgeted cost of direct materials purchases

$\backslash$table$[[,,],[,,]]$

Donavin Company

Direct Labor Budget

For the months of January, February, and March $2024$

Budgeted units to produce

Direct labor requirements $($hours$)$ per unit

Total direct labor hours needed

Direct labor rate $($per hour$)$

Total budgeted direct labor cost

$\backslash$table$[[,,],[,,]]$