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QS 22-12 Manufacturing: Production budget LO P1

Champ, Inc., predicts the following sales in units for the coming two months:

	May		June
Sales in units	190		260

Each months ending inventory of finished units should be 60% of the next months sales. The April 30 finished goods inventory is 114 units. Compute Champs budgeted production (in units) for May.

	CHAMP, INC. Production Budget For Month Ended May 31 Next months budgeted sales (units) Ratio of inventory to future sales Required units of available production Units to be produced

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Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,500 units (solar panels) in July and 4,600 units in August.

QS 22-13 Manufacturing: Direct materials budget LO P1

Each unit requires 3 pounds of direct materials, which cost $7 per pound. The companys policy is to maintain direct materials inventory equal to 30% of the next months direct materials requirement. As of June 30, the company has 4,950 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July.

	MIAMI SOLAR Direct Materials Budget For Month Ended July 31 Budget production (units) 5,500 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Budgeted cost of direct materials purchases

Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,500 units (solar panels) in July and 4,600 units in August.

QS 22-14 Manufacturing: Direct labor budget LO P1

Each unit requires 3 hours of direct labor at a rate of $14 per hour. Prepare a direct labor budget for July.

	MIAMI SOLAR Direct Labor Budget For Month Ended July 31 Budgeted production 5,500 Total labor hours needed Budgeted cost of direct labor

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