Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need answers as soon as possible please Exercise 7-4 Preparing Direct Materials and Direct Labour Budgets (LO2-CC7, 8) - EDITED The production department of Hareston

need answers as soon as possible please
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 7-4 Preparing Direct Materials and Direct Labour Budgets (LO2-CC7, 8) - EDITED The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year 1st Quarter 7,900 2nd Quarter 3,900 3rd Quarter 6,900 4th Quarter 5.900 Units to be produced In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1850 kilograms and the beginning accounts payable for the first quarter are budgeted to be $3,390. Each unit requires 29 kilograms of raw material that costs $2.30 per kilogram. Management desires to end each quarter with an Inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 2.175 kilograms, Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.6 direct labour-hours, and direct labour-hour workers are paid $185 per hour 2 Required: 1. Prepare the company's direct materials budget (Round your answer to the nearest whole dollar amount.) HARESTON COMPANY Direct Materials Budget Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sok Total needs (kilograms) int ences 2. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced (Do not round intermediate calculations.) HARESTON COMPANY Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labour-hours needed Total direct labour cost

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

Mis And Edp Auditing For Accountants And Auditors

Authors: Srv

1st Edition

9993730351, 978-9993730354

More Books

Students also viewed these Accounting questions