ACCT Exam 2

Amount needed to be Manufactured

= END FG+RequiredSales−BEG FG

budgeted direct labor cost

= units produced x DLWR x labor hours per unit

units produced

= units sold + end FG - beg FG

Raw material required to be purchased

=END RM+Raw material required (in units of the RM)−BEG RM

Raw material required for production

=FG produced×RM per unit

Labor cost per unit

=Labor hours per unit×Labor rate per hour

830,000 units

Each unit of finished goods requires 2 grams of raw material. The company plans to sell 780,000 units during the year. The number of units the company would have to manufacture during the year would be:

B

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,600 direct labor-hours will be required in August. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,490 per month, which includes depreciation of $8,860. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: A. $12,900 B. $104,530 C. $91,630 D. $113,390

$66.00 per unit

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.4 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The budgeted direct labor cost per unit of Product WZ would be:

$1,622,280

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.4 hours of direct labor at the rate of $15.00 per direct labor-hour.The company plans to sell 25,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 470 and 50 units, respectively. Budgeted direct labor costs for June would be:

1390000 grams

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) BEG 30,000 Finished goods (units) END 80,000 Raw material (grams) BEG 60,000 Raw material (grams) END 50,000 Each unit of finished goods requires 2 grams of raw material. If the company plans to sell 650,000 units during the year, how much of the raw material should the company purchase during the year?

The goods required to be purchased are 700,000 units

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) BEG 30,000 Finished goods (units) END 80,000 Raw material (grams) BEG 60,000 Raw material (grams) END 50,000 Each unit of finished goods requires 2 grams of raw material. If the company plans to sell 650,000 units during the year, how much of the raw material should the company purchase during the year?

830,000 units.

Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Finished goods (units) BEG 31,000 Finished goods (units) END 81,000 Raw material (grams) BEG 61,000 Raw material (grams) END 51,000 Each unit of finished goods requires 2 grams of raw material. If the company plans to sell 780,000 units during the year, the number of units it would have to manufacture during the year would be: