Using the sales budget, calculate the budgeted sales for February.

Complete the production budget. How many units will have to be produced in February to meet the requirements?
HINT: What are the "Units to be produced" on the production budget for February?

Prepare the Direct Materials Purchases Budget. What will be the cost of February's
production?
HINT: On the Direct Materials Purchases Budget, what will be the "Total direct
materials cost"?

Prepare the Direct Labour Budget. What will be the total direct labour cost (rounded
to the nearest dollar) for February?

 

Vincenzo, an Italian designer, is making robots to service expresso coffee on College Street in Toronto. The robots will roll to your table and also drop off the biscotti. Below is the expected (budgeted) data for the start of next year: Sales in units Sales price per unit January 50 $60.00 February 60 $65.00 March 70 $55.00 April 85 $50.00 The desired ending inventory for finished goods (production) is 20% of next month's sales. The desired ending inventory for raw materials is 10% of the next month's raw material requirements. Raw material required for each unit of the product is 5 units. The cost of each unit of raw material is $10 per unit. Time required to assemble one (1) robot is 90 minutes. Assembly line workers are paid $15 per direct labour hour. Using the above information answer the following questions.