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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Clic, Inc Provides the Following Data for the Next Four Months