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DREF Company produces and sells two products: Long sleeve and short sleeve Shirts. In November...

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Accounting

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DREF Company produces and sells two products: Long sleeve and short sleeve Shirts. In November 2019, the budget projected the following for 2020: Budgeted Sales Expected Inventories Units Price Jan. 1, 2020 Dec 31, 2020 Long 5,000 $50 2.000 units 2,500 units Short 6,000 $40 1,000 units 1,500 units The shirts are manufactured using the following direct materials: Direct Material Long Short A 3 lbs. 2 lbs. B 2 lbs. 1 lbs. Budgeted data for 2020 direct materials are: Direct Purchase Expected Inventories Material Price Jan. 1, 2020 Dec. 31, 2020 A $8 per lb. 2,000 lbs. 2.500 lbs. B $5 per lb. 1,000 lbs. 1,500 lbs. Budgeted data for 2020 Direct labor and overhead are: Direct labor: Long 0.25 hours per unit at $6 per hour Short 0.2 hours per unit at $6 per hour Overhead: $4 per direct labor hour 1. What is the total budgeted production of shirts in 2020? 2. What is the cost of purchases for direct material A for 2020? 3. What the direct labor costs for 2020? 4. What is the cost of ending finished goods inventory of the long shirts for 2020

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