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Using the following information, provide the answers requested below:
SALES/REVENUE INFORMATION:
1. Alpha expects to sell 10,000 units during the period, the budgeted sales price per unit is $50 per unit sold.
PRODUCTION INFORMATION:
1. Alpha begins the year with 2,000 units already produced. Alpha would like to end the year with 15,000 units remaining in ending inventory.
DIRECT MATERIAL INFORMATION:
1. To produce 1 unit, it requires 2 pounds of direct materials.
2. Direct materials costs $5 per pound.
3. Alpha begins the period with 3,000 pounds of direct materials. Alpha would like to end the year with 7,000 pounds of direct materials left over.
DIRECT LABOR INFORMATION:
1. To produce 1 unit, it requires 3 hours of direct labor.
2. Alpha pays $15 per direct labor hour.
Calculate the following information for Alpha:
- How many units must be produced?
- What is the expected cost of direct materials purchased during the year?
- What is the expected direct labor cost for the year?
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