cost accounting 416250


Use the following information to answer all five questions
Gerrad Manufacturing has projected sales for the next four months are shown in the tables below. The finished product requires 3 pounds
of raw materials and 10hours of direct labor. Gerrad tries to maintain a finished good ending inventory equal to the next two months of
sales and a raw material ending inventory equal to one half of the current month’s production needs.January’s beginning inventories
are expected to conform to company policy.
a. prepare a production budget for February,March, and April
b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound
of raw mateial is expected to be $2 in February, $2.30 in March, and $2.40 in April.
c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April.