M9-17&21 - M9-17 Department 16 Budget at 2,000...

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Unformatted text preview: M9-17 Department 16 Budget at 2,000 Output Level for October Direct materials ($3 × 2,000 × 20 × 1.10) Direct labor ($15 × 2,000 × 6) $132,000 180,000 Manufacturing overhead ($13 × 2,000 × 20) Other costs: Containers ($9 × 2,000) Total budget 520,000 18,000 $850,000 M9-21 Wooly Rug Company Production Budget For the Months of July, August, & September, 2009 July August September October Budgeted sales - sq. yards 200,000 180,000 150,000 160,000 Plus desired ending inventory* 72,000 60,000 64,000 Total inventory requirements 272,000 240,000 214,000 Less beginning inventory (100,000) (72,000) (60,000) Budgeted production – sq. yards 172,000 168,000 154,000 *40 percent following month’s sales Wooly Rug Company Purchases Budget For the Months of July & August, 2009 July August September Current needs for production (5 lb. per sq. yard) C 860,000 770,000 Plus desired ending inventory* 252,000 321,000 Total requirements 1,112,000 1,161,000 Less beginning inventory (400,000) (252,000) Purchases in pounds 712,000 909,000 * *30 percent of following month’s production requirements. 840,000 ...
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M9-17&21 - M9-17 Department 16 Budget at 2,000...

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