Answer:
June 30:
estimated inventory of skis = 6,400
estimated inventory of carbon fiber = 7,400
164,000 skis will be sold during next quarter
each pair of skis sells for $440
Inventory for September 30:
estimated inventory of skis = 4,900
estimated inventory of carbon fiber = 5,400
cost of carbon fiber = $13 per pound x 2 = $26 per ski
direct labor = $9 per ski
variable overhead per ski = $4
fixed overhead = $1,796,000
1 ) Production budget:
expected sales 164,000 units
- beginning inventory 6,400 units
+ ending inventory 4,900 units
budgeted production 162,500 units
2) Materials budget
budgeted production 162,500 units
<u>materials required per unit 2 pounds</u>
total materials need for Px 325,000 lbs.
<u>+ lbs. ending inventory 5,400 lbs. </u>
total materials needed 330,400 lbs.
<u>- beginning inventory 7,400 lbs. </u>
purchase requirement 323,000 lbs.
<u>cost per pound $13 </u>
total materials budget $4,199,000
3) Direct labor budget
budgeted production 162,500 units
<u>direct labor per unit 0.5 hours</u>
total direct labor hours 81,250 hours
<u>cost per direct labor hour $18 </u>
total direct labor budget $1,462,500
4) Factory overhead budget
total direct labor hours 81,250 hours
<u>cost per direct labor hour $8 </u>
total factory overhead $650,000
<u>fixed overhead $1,796,000</u>
total factory overhead budget $2,446,000