Jasinski Jewelry produces a component for lapel pins.Budgeted production in April is 8,400 units.Each unit requires 1/3 ounce of gold,and 2 hours of direct labor time.It is estimated that Jasinski will have 100 ounces of gold on hand at April 1,and since management anticipates an increase in the price of gold in the coming months,the desired ending inventory at the end of April is 150 ounces.The standard cost of an ounce of gold is $300.The standard rate for direct labor is $25 per hour.

(1)Prepare a direct materials budget.
(2)Prepare a direct labor budget.

Question

Jasinski Jewelry produces a component for lapel pins.Budgeted production in April is 8,400 units.Each unit requires 1/3 ounce of gold,and 2 hours of direct labor time.It is estimated that Jasinski will have 100 ounces of gold on hand at April 1,and since management anticipates an increase in the price of gold in the coming months,the desired ending inventory at the end of April is 150 ounces.The standard cost of an ounce of gold is $300.The standard rate for direct labor is $25 per hour.
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(1)Prepare a direct materials budget.
(2)Prepare a direct labor budget.

Quizplus · Accepted Answer

The Answer of Jasinski Jewelry produces a component for lapel pins.Budgeted production in April is 8,400 units.Each unit requires 1/3 ounce of gold,and 2 hours of direct labor time.It is estimated that Jasinski will have 100 ounces of gold on hand at April 1,and since management anticipates an increase in the price of gold in the coming months,the desired ending inventory at the end of April is 150 ounces.The standard cost of an ounce of gold is $300.The standard rate for direct labor is $25 per hour.
​
(1)Prepare a direct materials budget.
(2)Prepare a direct labor budget.

Jasinski Jewelry Produces a Component for Lapel Pins