question and outline

Production Budgct Problem Jackson Manufting has piojected sales of its product for the next six months as follows January February March April Projected Sales -300 units 400 units 500 units 600 units 700 units 800 units June The following informaion relates t o the Metro planned production process (1) unit requires: 5 lbs of raw materials 9 hours of direct labor (2) The company tries to maintain an ending finished goods inventory equal to 150% of the following month's sales 60% (3) The company ries to maintain ending raw materia inventory equal to of the current month production needs (4) January's projected beginning inventory is consistent with the company's policy of the appropriate inventory levels to be maintained.* (5) Direct labor rate is assumed to be S15 per hour Required: (a) Prepare a production budget for February, March, and April (b) Prepare a forecast of the units and cost of raw material that will be required for February, March, and Apri The expected cost per pound of raw material is expected to be the following February March April $3.30 $3.40 $3.50 (c) Prepare a direct labor budget for February, March and April