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MariettaO [177]
3 years ago
10

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.2 hours of direct labor at the r

ate of $18.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 38,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted direct labor costs for June would be:
Business
1 answer:
Oksana_A [137]3 years ago
3 0

Answer:

$1,485,000

Explanation:

Given that,

Ending Inventory = 100 units

Sales = 38,000 units

Beginning Inventory  = 600 units

Direct labor hours required per unit  = 2.2 DLH

Rate per direct labor-hour = $18

Total Units produced in June:

= Ending Inventory + Sales - Beginning Inventory

= 100 units + 38,000 units - 600 units

= 37,500 units

Budgeted direct labor costs for June would be:

= Total Units produced in June × Direct labor hours required per unit × Rate per direct labor-hour

= 37,500 units × 2.2 × $18

= $1,485,000

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2 years ago
Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1
Setler [38]

Answer:

Cost of goods sold as per average cost method = $92,458.5

Explanation:

As for the information provided as follows:

Opening Inventory             265 units     @         $153 each      = $40,545

Purchase                             465 units     @         $173 each      = $80,445

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Average cost per unit = $156,135/895 = $174.45

In average cost method simple average is performed, whereas in weighted average weights are assigned.

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Answer:

Explained below.

Explanation:

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