Question

CatTreez, Inc. is a small company that manufactures cat trees from wood and sisal rope. CatTreez has projected that sales will be 240 units in April and 210 units in May. Each unit sells for $140.00. CatTreez’s policy is to keep 20% of the following month’s projected sales in finished goods inventory each month.

CatTreez pays direct labor $15/hour to manufacture its units, which each require two hours of direct labor to manufacture. Each unit requires 30 board-feet of wood and 100 feet of sisal rope. Wood costs $0.40 per board-foot, and sisal rope costs $0.10 per foot. Variable overhead is estimated at 120% of direct labor costs.

Each month, fixed manufacturing overhead costs $6,500 and period expenses cost $4,000. Beginning finished goods inventory for April is budgeted to be $3,200.00.

Need April

a. Budgeted revenue

Dollars  

b. Budgeted production

  

Incorrect

c. Budgeted direct labor hours

d. Budgeted direct labor cost

Dollars

e. Budgeted wood usage in board-feet

f. Budgeted sisal usage in feet

g. Budgeted total cost of direct material usage

Dollars

h. Budgeted manufacturing overhead

Dollars

i. Predetermined manufacturing overhead rate

Percent

j. The value of budgeted ending FG inventory

k. Budgeted cost of goods sold

Dollars

l. Budgeted operating income

Answer 1