Homework answers / question archive /  1) A manufacturing company makes one product and has provided the following information: Budgeted selling price per unit $65 Budgeted unit sales (all on credit): January 10,500 February 11,200 March 13,400 April 15,300 Raw materials requirement per unit of output 2 pounds Raw materials cost $4 per pound Direct labor requirement per unit of output 1

 1) A manufacturing company makes one product and has provided the following information: Budgeted selling price per unit $65 Budgeted unit sales (all on credit): January 10,500 February 11,200 March 13,400 April 15,300 Raw materials requirement per unit of output 2 pounds Raw materials cost $4 per pound Direct labor requirement per unit of output 1

Accounting

Share With

 1) A manufacturing company makes one product and has provided the following information: Budgeted selling price per unit $65 Budgeted unit sales (all on credit): January 10,500 February 11,200 March 13,400 April 15,300 Raw materials requirement per unit of output 2 pounds Raw materials cost $4 per pound Direct labor requirement per unit of output 1.5 direct labor-hours Direct labor wage rate $15 per direct labor-hour Credit sales are collected: 35% in the month of the sale 65% in the following month Raw materials purchases are paid: 40% in the month of purchase 60% in the following month The ending finished goods inventory should equal 15% of the following month's unit sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.