The companys policy requires maintaining units on hand at


Problem #1

Gildan, Inc. is the main manufacturing of IPads in Australia. Their budgeted sales for the first quarter of the year 2017 are the following:

Months

IPads

Budgeted Production Units

January

70,000

69,000

February

55,000

58,000

March

60,000

57,000

The company's policy requires maintaining units on hand at the end of each month equal to 20% of next month's budgeted unit sales, and to maintain materials at the end of each month equal to 10% of the next month's production needs. Each IPads requires 4 pounds of material and 15 minutes of direct labor to produce. Employees are paid $15 per hour. Manufacturing overhead is applied at $5.40 per direct labor hour.

Required:  Prepare a direct labor budget for the month of February 28, 2017.

Problem #2

During October, Minolta, Inc.'s production budget showed 4,500 units to be produced, and its sales budget showed 4,800 cameras to be sold. Budgeted manufacturing costs for October appear below:

Indirect labor

$5.00 per camera

Supplies

$6.80 per camera

Factory depreciation

$36,000

Factory supervisory salaries

30,000

Fixed factory occupancy

44,000

Required:  Prepare a manufacturing overhead budget for October 31, 2017.

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Accounting Basics: The companys policy requires maintaining units on hand at
Reference No:- TGS02565378

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