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Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,100 units in August.

QS 22-13 Manufacturing: Direct materials budget LO P1

Each unit requires 3 pounds of direct materials, which cost $6 per pound. The companys policy is to maintain direct materials inventory equal to 30% of the next months direct materials requirement. As of June 30, the company has 4,500 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July.

X Answer is complete but not entirely correct. MIAMI SOLAR 5,000 3 15,000 Direct Materials Budget For Month Ended July 31 Budget production (units) Materials price per pound Materials needed for production (lbs.) Add: Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Less: Beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases 3,060 18,060 4,500 13,560 6 $ 81,360 Required information Use the following information for the Quick Study below. Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,100 units in August. QS 22-14 Manufacturing: Direct labor budget LO P1 Each unit requires 4 hours of direct labor at a rate of $14 per hour. Prepare a direct labor budget for July. MIAMI SOLAR Direct Labor Budget For Month Ended July 31 Budgeted production 5,000 Total labor hours needed Budgeted cost of direct labor Required information Use the following information for the Quick Study below. Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,100 units in August. QS 22-15 Manufacturing: Factory overhead budget LO P1 Each unit requires 4 hours of direct labor at a rate of $14 per hour. Variable factory overhead is budgeted to be 80% of direct labor cost, and fixed factory overhead is $179,000 per month. Prepare a factory overhead budget for August. MIAMI SOLAR Factory Overhead Budget For Month Ended August 31 Budgeted total overhead $ 0