Question
Pullman manufactures luxury watches. They expects to sell 3,200 watches in April. The company had enough materials inventory at the end of March to produce
Pullman manufactures luxury watches. They expects to sell 3,200 watches in April. The company had enough materials inventory at the end of March to produce 1,800 watches and wants to maintain a materials inventory on April 30 to produce 2,000 watches. Pullman has 1,100 watches on March 31 and has a desired inventory of 2,800 watches on April 30. The watches are expected to sell for $7,600 each. Direct material cost is $2,200 per watch, direct labor cost is $1,400 per watch, and factory overhead is $800 per watch.
1. Determine Pullmans budgeted production for April
2. Determine Pullmans budgeted cost of goods sold for April
3. Determine Pullmans budgeted cost for DM purchases, DL, and FOH for April
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