Question
Problem 3 Anderson, Inc. provides the following data for the April July 2019: March April May June July Budgeted production units 500 580 530 600
Problem 3
Anderson, Inc. provides the following data for the April July 2019:
| March | April | May | June | July |
Budgeted production units |
| 500 | 580 | 530 | 600 |
Ending Raw Materials Inventory | 663 lbs. |
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|
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Desired ending inventory: Raw materials (pounds) = 30% of next month's production needs Pounds of raw material required for each finished Unit = 5 lbs
Raw material price = $8/lb
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
Required:
a. Prepare the Direct Materials Budget for April, May and June.
b. Prepare the Direct Labor Budget for April, May and June.
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