Tangshang Industries production budget from the 2nd quarter of 2018, projected the following amounts of units to be produced:
April 1,000 units
May 1,200 units
June 1,250 units
Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.25 per unit and component B cost is $.80 per unit.
1. Calculate the Direct Material budgeted cost for May 2018
2. Calculate the Direct Material budgeted cost for the quarter April - June 2018
3. The raw materials inventory policy is 0 ending inventory, 0 beginning inventory. How much inventory of component A is required in April 2018?
Each unit requires the following labor:
2 hours in the processing department
1 hour in the assembly department
Processing department labor rate is $4/hour
Assembly department labor rate is $6/hour
Using the information from the production budget of Tangshang Industries
4. Calculate Total Direct Labor Cost in the processing department for the quarter April – June 2018.
5. Calculate Total Direct Labor Cost for June 2018.
6. Calculate Total Direct Labor Cost for the quarter April – June 2018.
Variable Factory overhead is $.60 per unit
Fixed Factory overhead is $1,000 monthly
Using the information from the production budget of Tangshang Industries
7. Calculate total variable overhead cost for May 2018
8. Calculate total variable overhead cost for the quarter April - June 2018
9. Calculate total overhead cost for the quarter April - June 2018
10. Calculate total product cost for the quarter April - June 2018
11. Calculate total product cost per unit for the quarter April - June 2018
12. If the sale price is $32.50, what will be the Gross Profit per unit?
13. If the sale price is $32.50 for the units produced during the quarter, what will be the Total Gross Profit?