Lowell Company makes and sells artistic frames for pictures. Thecontroller is responsible for preparing the master budget and hasaccumulated the following information for 2020.

		January		February		March		April		May
Estimated unit sales		10,800		11,100		8,700		8,400		8,000
Sales price per unit		$50.50		$48.20		$48.20		$48.20		$48.20
Direct labor hours per unit		2.0		2.0		1.5		1.5		1.5
Wage per direct labor hour		$9		$9		$9		$10		$10

Lowell has a labor contract that calls for a wage increase to $10per hour on April 1. New labor-saving machinery has been installedand will be fully operational by March 1.

Lowell expects to begin the year with 16,350 frames on hand and hasa policy of carrying an end-of-month inventory of 100% of thefollowing month’s sales, plus 50% of the second following month’ssales.

Prepare a production budget for Lowell Company by month and forthe first quarter of the year.

LOWELL COMPANY Production Budget                                                                   For the YearEnding March 31, 2020March 31, 2020For the Quarter Ending March 31,2020
		Jan		Feb		Mar		Total
Total MaterialsRequiredDesired Ending Direct MaterialsDirect MaterialsPurchasesRequired Production UnitsTotal Required UnitsDesiredEnding Finished Goods UnitBeginning Direct MaterialsDirectMaterials Per UnitBeginning Finished Goods UnitExpected UnitSales
AddLess:                                                                  Total Materials RequiredRequired Production UnitsTotal RequiredUnitsExpected Unit SalesDesired Ending Direct MaterialsDirectMaterials Per UnitDirect Materials PurchasesBeginning FinishedGoods UnitDesired Ending Finished Goods UnitBeginning DirectMaterials
Desired EndingFinished Goods UnitRequired Production UnitsBeginning DirectMaterialsDirect Materials Per UnitDesired Ending DirectMaterialsTotal Required UnitsExpected Unit SalesTotal MaterialsRequiredDirect Materials PurchasesBeginning Finished Goods Unit
AddLess:                                                                  Total Required UnitsTotal Materials RequiredExpected UnitSalesBeginning Finished Goods UnitRequired Production UnitsDirectMaterials Per UnitDirect Materials PurchasesBeginning DirectMaterialsDesired Ending Direct MaterialsDesired Ending FinishedGoods Unit
Desired EndingDirect MaterialsBeginning Direct MaterialsRequired ProductionUnitsBeginning Finished Goods UnitDirect Materials Per UnitTotalRequired UnitsTotal Materials RequiredExpected Unit SalesDesiredEnding Finished Goods UnitDirect Materials Purchases

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Prepare a direct labor budget for Lowell Company by month andfor the first quarter of the year. The direct labor budget shouldinclude direct labor hours. (Round Direct labor hoursper unit answers to 1 decimal place, e.g. 52.7.)

LOWELL COMPANY Direct Labor Budget                                                                   For the QuarterEnding March 31, 2020For the Year Ending March 31, 2020March 31,2020
		Jan		Feb		Mar		Total
Total MaterialsRequiredDirect Labor Time (Hours) Per UnitCost Per PoundTotalPounds Required for ProductionTotal Direct Labor CostDirectMaterials PurchasesDesired Ending InventoryTotal Required DirectLabor HoursDirect Materials Per UnitDirect Labor Cost Per HourTotalCost of Direct Materials PurchasesBeginning MaterialsInventoryUnits to be Produced
DirectMaterials PurchasesBeginning Materials InventoryCost PerPoundDirect Labor Cost Per HourDirect Labor Time (Hours) PerUnitTotal Cost of Direct Materials PurchasesDirect Materials PerUnitTotal Materials RequiredTotal Direct Labor CostTotal RequiredDirect Labor HoursTotal Pounds Required for ProductionUnits to beProducedDesired Ending Inventory
Direct LaborTime (Hours) Per UnitTotal Materials RequiredDirect MaterialsPurchasesDirect Materials Per UnitTotal Required Direct LaborHoursBeginning Materials InventoryTotal Direct Labor CostCost PerPoundDirect Labor Cost Per HourTotal Cost of Direct MaterialsPurchasesDesired Ending InventoryUnits to be ProducedTotal PoundsRequired for Production
Total RequiredDirect Labor HoursTotal Direct Labor CostDirect Labor Cost PerHourCost Per PoundBeginning Materials InventoryUnits to beProducedDirect Labor Time (Hours) Per UnitDirect MaterialsPurchasesTotal Cost of Direct Materials PurchasesDirect MaterialsPer UnitDesired Ending InventoryTotal Materials RequiredTotalPounds Required for Production		$		$		$
Cost PerPoundDirect Materials Per UnitTotal Cost of Direct MaterialsPurchasesDirect Materials PurchasesBeginning MaterialsInventoryUnits to be ProducedTotal Materials RequiredDirect LaborCost Per HourTotal Required Direct Labor HoursDirect Labor Time(Hours) Per UnitDesired Ending InventoryTotal Pounds Required forProductionTotal Direct Labor Cost		$		$		$		$