Ramos Co. provides the following sales forecast and production budget for the next four months.July660600Sales (units)Budgeted production (units)April560500The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of nextmonth's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 perpound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variableoverhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month.1. Prepare a direct labor budget for April, May, and June.2. Prepare a factory overhead budget for April, May, and June.Required 1 Required 2May640630Complete this question by entering your answers in the tabs below.RAMOS CO.June590600Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.)Direct Labor Budget< Prev2 of 3+Next >G 1. Prepare a direct labor budget for April, May, and June.2. Prepare a factory overhead budget for April, May, and June.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a direct labor budget for April, May, and June. (Enter your direct labor hours (hrs.) per unit in two decimal places.)Budgeted production (units)Total labor hours neededBudgeted direct labor costRAMOS CO.Direct Labor BudgetFor April, May, and JuneAprilMay500< Required 1O630< PrevJuneRequired 2 >NGS600 units2of 3ગ‒‒‒‒‒‒Next >

Budgeting - Budget is the estimation made by the organization according to the past performance.…

Ramos Co. provides the following sales forecast and production budget for the next four months. July 660 600 Sales (units) Budgeted production (units) April 560 500 May June 640 590 630 600 The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

Ramos Co. provides the following sales forecast and production budget for the next four months. July 660 600 Sales (units) Budgeted production (units) April 560 500 May June 640 590 630 600 The company plans for finished goods inventory of 180 units at the end of June. In addition, each finished unit requires 6 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 25% of next month's production needs. Beginning direct materials inventory for April was 750 pounds. Direct materials cost $3 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $22 per hour. The company budgets variable overhead at the rate of $26 per direct labor hour and budgets fixed overhead of $8,600 per month. 1. Prepare a direct labor budget for April, May, and June. 2. Prepare a factory overhead budget for April, May, and June.

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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