Mercury Bag Company produces cases of groceny bags.The managers at Mercury are t
ID: 2518719 • Letter: M
Question
Mercury Bag Company produces cases of groceny bags.The managers at Mercury are thying to develop budgets for the upcoming quarter. The following data have been gathered. Projected sales in unita Selling price per case Inventory at the beginning of the quarter Target inventory at the end of the quarter Direct labor hours needed to produce one cane Direct labor wages Direct materials cost per case Variable manufacturing overhead cost per case Fixed overhead costs for the upcoming quarter 1,300 cases $240 150 casers 100 cases 2 hours 10 per hour 220,000 a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units b. What is Mercury's budgeted variable manufacturing cost per case? c. Prepare Mercurys manufacturing cost budget. d. What is the projected ending value of the Inventory account? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Using the above information, develop Mercury's sales forecast in dollars and production schedule in units. Budgeted sales (in dollars) Planned production (cases) Required B>Explanation / Answer
Sales forecats= Projected unit sales* selling price per unit
=1300*240=312000
Production schedule:
Planned production= Budgeted sales+Ending inventory expected-beg inventory
=1300+100-150=1250