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Unformatted text preview: P9-40a.Jacobs IncorporatedProduction BudgetFor the Months of January and February 2011JanuaryFebruaryMarchRequirements for current sales500010,0008,000Desired ending inventoryi(20 % following months sales)m2,0001,600Total requirements7,00011,600Less beginning inventoryi(20 % current months sales)s(1,000)(2,000)Production requirements6,0009,600b.Jacobs IncorporatedPurchases BudgetFor the Month of January 2011JanuaryFebruaryCurrent requirements (units)6,0009,600Desired ending inventoryi(10 % following months production 960requirements)Total requirements6,960Less beginning inventoryi(10 % current months requirements)(600)Purchases (units)6,360Purchases (dollars at $10 each)$63,360$P9-40 (cont.)c.Jacobs IncorporatedManufacturing Cost BudgetFor the Month of January 2011Variable costsDirect materials (6,000 $10)$60,000Direct labor (6,000 $10)60,000Variable manufacturing overhead (6,000 $5)30,000Total variable costs150,000Fixed manufacturing overhead30,000Total manufacturing overhead...
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- Spring '11