Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. solomon, inc. is preparing budgets for the quarter

Solomon, Inc. is preparing budgets for the quarter ending Sep 30. Budgeted sales for the...

60.1K

Verified Solution

Question

Accounting

Solomon, Inc. is preparing budgets for the quarter ending Sep 30. Budgeted sales for the next five months are: Jun 12,000 units Jul 15,000 units Aug 20,000 units Sep 25,000 units Oct 20,000 units Nov 18,000 units Dec 17,500 units Selling price per unit is $10. The management wants ending inventory to be equal to 40% of the following 2 months budgeted sales in units. On June 30, 8,000 units were on hand. Eight pounds of material are required per unit of product. Management wants materials on hand at the end of each month equal to 20% of the following months production. On June 30, 20,000 pounds of material are on hand. Material costs 0.75$ per pound. Each unit of product requires 0.25 hours of direct labor. Wage rate is set $6 per DLH. Please prepare: a. Sales budget b. Production budget c. DM budget d. DL budget

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students