Question - Seer, Inc. has projected sales of its product for the next 6 months as follows:
July 120 units
August 270
September 300
October 240
November 90
December 210
The product sells for $100 per unit, variable expenses are $30 per unit, and fixed expenses are $1,500 per month. The finished product requires 3 units of raw material and 10 hours of direct labour. The company tries to maintain an ending inventory of finished goods equal to the next 2 months of sales and an ending inventory of raw materials equal to half of the current month's usage.
Prepare a production budget for August, September, and October?
Prepare a direct labour hours budget for August, September, and October?