Question - Production and related schedules
Goldstein Inc. manufactures and sells plastic boxes and trays. Sales are projected to be evenly spread over the annual period. Estimated product sales and material needs for each unit of product follow.
Boxes Trays
Annual Sales 42,000 30,000
Material A 2.0 Pounds 1.0pounds
Material B 1.5 pounds 0.8 pounds
Direct Labor 0.3 hours 0.2 hour
Overhead is applied at a rate of $1.60 per direct labor hour.
Expected Beginning Inventories Desired Ending Inventories
Material A 1,780 pounds 1,500 pounds
Material B 5,000 pounds 1,400 pounds
Boxes 1,200 units 1,800 units
Trays 800 units 650 units
Material A costs $0.05 per pound, and Material B costs $0.07 per pound.
a. Production schedule by product and in total
b. Purchases budget in units by raw material, in total, and in dollars
c. Direct Labor budget in hours by product, in total, and in dollars. The average direct labor wage rate is $9.50 per hour
d. Overhead to be charged to production by product and in total