Budgeted unit January 9,500 February 9,900 March 10,600 April 12,600 Raw materials requirement per unit of output 3pounds Raw materials cost $5.00per pound Direct labor requirement per unit of output 2.2direct labor-hours Direct labor wage rate $18.00per direct labor-hour Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases? g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match th hours required to produce the forecasted number of units produced?
Budgeted unit January 9,500 February 9,900 March 10,600 April 12,600 Raw materials requirement per unit of output 3pounds Raw materials cost $5.00per pound Direct labor requirement per unit of output 2.2direct labor-hours Direct labor wage rate $18.00per direct labor-hour Credit sales are collected: 40% in the month of the sale & 60% in the following month Raw materials purchases are paid: 30% in the month of purchase & 70% in the following month The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs. Required: (LO_5) EXCEL a. What are the budgeted sales for February? b. What are the expected cash collections for February? c. According to the production budget, how many units should be produced in February? d. If 32,400 pounds of raw materials are needed for production in March, how many pounds of raw materials should purchased in February? e What is the estimated cost of raw materials purchases for February? f. If the cost of raw material purchases in January is $145,680, then in February what are the total estimated cash disbursements for raw materials purchases? g. What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match th hours required to produce the forecasted number of units produced?
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter12: Integer Linear Optimization_models
Section: Chapter Questions
Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...
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