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please help Garrett Company manufactures luggage sets. Garrett sells its luggage sets to department stores. Garrett expects to sell 1, 500 luggage sets for $180
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Garrett Company manufactures luggage sets. Garrett sells its luggage sets to department stores. Garrett expects to sell 1, 500 luggage sets for $180 each in January, and 1, 750 sets for $180 in February. All sales are cash only. Prepare the sales budget for January and February. Garrett has 190 luggage sets on hand on January 1 and desires to have an ending inventory equal to 10% of the next month's sales. March sales are expected to be 1, 800 luggage sets. Use this information and the sales budget information in part a to prepare Garrett's production budget for January and February. Garrett budgets $68 per luggage set for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw materials Inventory account (all direct materials) on January 1 is $45,000. Garrett desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending inventory for February is $46, 800. Use this information and the production budget in part b to prepare Garrett's direct materials budget for January and February. Garrett budgets four direct labor hours per luggage set. Direct labor costs average $18 per hour. Use this information and the production budget in part b to prepare Garrett's direct labor budget for January and February. Budgeted sets to he sold Plus. Desired sets in ending inventory Total sets needed Less. Sets in beginning inventory Budgeted sets to be produced Budgeted sets to be produced Direct materials cost per set Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Budgeted sets to be produced Direct labor hours per set Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor costStep by Step Solution
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