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.

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.