Question

Bradford, Inc., expects to sell​ 9,000 ceramic vases for​ $21 each. Direct materials costs are​ $3, direct manufacturing labor is​ $12, and manufacturing overhead is​ $3 per vase. The following inventory levels apply to​ 2019: Beginning inventory Ending inventory Direct materials ​3,000 units ​3,000 units Workminusinminusprocess inventory 0 units 0 units Finished goods inventory 300 units 500 units What are the 2019 budgeted production costs for direct​ materials, direct manufacturing​ labor, and manufacturing​ overhead, respectively?

Answer 1

Answer:

Direct material= $19,500

Direct labor= $78,000

Overhead= $19,500

Explanation:

Giving the following information:

Direct materials costs are​ $3, direct manufacturing labor is​ $12, and manufacturing overhead is​ $3 per vase.

The following inventory levels apply to​ 2019:

Beginning inventory - Ending inventory

Direct materials ​3,000 units ​3,000 units

Finished goods inventory 300 units 500 units

Sales= 9,000 units

First, we need to determine the number of units to be produced:

Production= sales + desired ending inventory - beginning inventory

Production= 9,000 + 500 - 3,000= 6,500

Purchases (direct material)= produciton + desired ending inventory - beginning inventory

Purchases= 6,500 + 3,000 - 3,000= 6,500

Now, we can calculate the budgeted costs:

Direct material= 3*6,500= $19,500

Direct labor= 12*6,500= $78,000

Overhead= 3*6,500= $19,500