Pinecroft Company manufactures one product that requires 4 hours of machining direct labor and 3 hours of assembly direct labor.The standard labor rate is $20.00 per direct labor hour in the Machining Department and $16.00 per direct labor hour in the Assembly Department.The product has forecasted sales of 3,000 units in July.The estimated finished goods inventory at July 1 is 300 units and the desired ending inventory at July 31 is 400 units.

(1)Prepare a production budget for the month of July.
(2)Prepare a direct labor budget for the month of July.

Question

Pinecroft Company manufactures one product that requires 4 hours of machining direct labor and 3 hours of assembly direct labor.The standard labor rate is $20.00 per direct labor hour in the Machining Department and $16.00 per direct labor hour in the Assembly Department.The product has forecasted sales of 3,000 units in July.The estimated finished goods inventory at July 1 is 300 units and the desired ending inventory at July 31 is 400 units.
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(1)Prepare a production budget for the month of July.
(2)Prepare a direct labor budget for the month of July.

Quizplus · Accepted Answer

The Answer of Pinecroft Company manufactures one product that requires 4 hours of machining direct labor and 3 hours of assembly direct labor.The standard labor rate is $20.00 per direct labor hour in the Machining Department and $16.00 per direct labor hour in the Assembly Department.The product has forecasted sales of 3,000 units in July.The estimated finished goods inventory at July 1 is 300 units and the desired ending inventory at July 31 is 400 units.
​
(1)Prepare a production budget for the month of July.
(2)Prepare a direct labor budget for the month of July.

Pinecroft Company Manufactures One Product That Requires 4 Hours of Machining