Summary problem

The following information relates to Al-Noor Textile Manufacturing Company:

Average sales price: $ 56
Sales by territory (units):
Territory
January
February
March

1
67,500
64,000
70,500

2
80,000
89,500
86,000

3
35,000
41,000
29,500

4
101,000
97,500
112,000

5
91,500
87,500
110,500

Desired finished goods inventories (units):

January 1 . 204650
January 31 . 201500
February 28 195900
March 31 206100
One unit of direct materials is required to produce one finished unit.
Direct material cost per unit is $44
Desired ending direct materials inventory: 55% of next months production
Production- April:
216710 (Units)
The estimated direct labor hours and direct labor cost per hour to complete one unit differ
each month because of the differing availability of skilled workers. They are as follows:
Month
January
February
March

Hours per unit

.834409
.830115
.856078

Cost per unit

3.595359
3.613957
3.504352

Required:
Given the preceding information, prepare the following budgets for the
Atticus Manufacturing Company for the first quarter 2016.
a.
b.
c.
d.
e.

Sales in units and dollars.

Production
Direct materials purchase budget.
Direct Material Usage budget
Direct labor