Clic, Inc.provides the following data for the next four months:
Desired ending inventory:
Raw materials = 30% of next month's production needs
Finished goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
Required:
a.Calculate the budgeted production for April and May.
b.Calculate the amount of purchases of raw materials in pounds for April and May.
c.Calculate the cost of direct labor for May.
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