San Antonio Furniture Company makes two products: bookshelves and rocking chairs. The following information is available for September:

a. Production requirements:

c. Total actual resources used in production during September \begin{tabular}{|c|c|}
\hline aterials & $\$ 4,259$ \\
\hline Direct labor & 3,850 \\
\hline Variable manufacturing overhead. . & 1,500 \\
\hline Fixed manufacturing overhead. . . . & 700 \\
\hline \end{tabular}
1. Prepare the production budget, assuming that the company expects $(0)$ sell +11 bookshelves and 50 rocking chairs in September 2. Based on the production budget and the desired ending inventory level. prepare the direct materials usage and purchases budget for September 3. If the company actually sold the number of bookshelves and rocking chairs projected, how much would the cost of goods sold be for September?

Transcribed Image Text:

a. Production requirements: Bookshelves Rocking Chairs Materials needed: Wood. Stain. Bolts, nuts, etc. Direct labor.. Variable manufacturing overhead Fixed manufacturing overhead 100 board feet at $0.90/ft 2 gallons at $9/gallon 1 dozen at $1.50/dozen 12 hours at $8.50/hour 12 hours at $4/ direct labor hour $16 per unit 90 board feet at $0.90/ft 3 gallons at $9/gallon 1% dozen at $1.50/dozen 10 hours at $8.50/hour 10 hours at $4/ direct labor hour $15 per unit b. Levels of inventories: Wood. Stain Bolts, nuts, etc.. Finished bookshelves. Finished rocking chairs. Actual Beginning Inventory 1,100 board feet 11 gallons 15 dozen 3 6 Desired Ending Inventory 1,000 board feet 12 gallons 9 dozen 5 7