HW59_60_61sol

# HW59_60_61sol - Problem 59 Because the problem is asking...

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Problem 59 Because the problem is asking for sales, and you know the number of units to be sold, inventory levels are not relevant. Units to be sold: 35,000*1.1*1.1 = 42,350 Sales price per unit \$1.40 Budgeted sales revenue \$59,290

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Problem 60 Sales (units) January 14,800 February 15,600 March 14,900 April 16,600 A. Production budget February March Frames (FG) to be sold 15,600 14,900 Add ending FG inventory desired (20%*14900) 2,980 3320 Less beginning FG inventory on hand (20%*15,600) (3,120) (2,980) Budgeted frames (FG) to be produced 15,460 15,240 Finished units to be produced 15,460 Pounds of clay per finished good unit 2.2 Pounds of clay (RM) needed for production 34,012 Add desired RM ending inventory (25%*15,240*2.2) 8,382 Less expected RM beginning inventory on hand (25%*15,460*2.2) (8,503) Pounds of clay to be purchased 33,891 Answer B Cost per pound \$0.30 Budgeted cost of materials purchases for February \$10,167 Answer C D Finished units to be produced 15,460 Time required per frame in hours 0.40 Budgeted hours needed for production 6,184 Cost per hour \$14.00 The \$14 includes fringe benefits in th Budgeted direct labor cost \$86,576 E Finished units to be produced 15,460
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HW59_60_61sol - Problem 59 Because the problem is asking...

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