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Nicely Dawn Corporation has the following budgeted production (in units) for four months: April...

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Accounting

Nicely Dawn Corporation has the following budgeted production (in units) for four months:

April 50,000 May 40,000 June 45,000 July 60,000

Each unit of products requires 2 pieces of raw materials. The desired ending raw materials inventory is 130% of the following month's production needs, plus 2,000 pieces. (April 1inventory meets this requirement.)

The product is processed in two departments (Dept. A and Dept. B) and the direct labor standards are as follows:

hours/unit rate/hour labor cost/unit Depr. A 6 30 180 Dept. B 2 40 80

a. what is the budgeted purchases of raw materials in may? b. what is the budgeted purchases of raw materials in june? c. what is the budgeted direct labor cost for the month of may?

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