ACME Incorporated budgeted production for the fourth quarter of 2023 as follows: Month Production in Units October 25,000 November 30,000 December Total 35,000 90,000 250 grams of high-quality silica sand and 30 minutes of direct labour are required for each unit produced. At the start of the year, the expected quantity of raw materials was on hand. ACME's production policy states that 20% of next month's production needs should be available at the end of each month. Silica sand costs $1.00 per kilogram and the direct labour rate is $17.00 per hour. Required: Prepare a direct materials budget for October, including kilograms required and total cost. What is the expected direct labour cost for October? What amount will appear for raw material inventory on the budgeted balance sheet at October 31, 2023?

ACME Incorporated budgeted production for the fourth quarter of 2023 as follows: Month Production in Units October 25,000 November 30,000 December Total 35,000 90,000 250 grams of high-quality silica sand and 30 minutes of direct labour are required for each unit produced. At the start of the year, the expected quantity of raw materials was on hand. ACME's production policy states that 20% of next month's production needs should be available at the end of each month. Silica sand costs $1.00 per kilogram and the direct labour rate is $17.00 per hour. Required: Prepare a direct materials budget for October, including kilograms required and total cost. What is the expected direct labour cost for October? What amount will appear for raw material inventory on the budgeted balance sheet at October 31, 2023?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4PB

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The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
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