Solution-Calculate the production budget in units

Calculate the production budget in units

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Reference no: EM132517598

The sales projection of a certain company for the next year of operations will be 15,000 units. Currently, the company has 1,500 units in inventory. Since it understands that it is a lot of inventory, the company plans to reduce the ending inventory of the next year of operations to 60% of the current quantity. On the other hand, the company wants to project its conversion costs for the next year and reduce how to reduce them. Currently, these costs represent an average of $ 55 / unit to produce, of which 40% represent direct labor.

Required:

Question 1 : Calculate the production budget in units .

Question 2 : Calculate direct labor cost budget

Reference no: EM132517598

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Calculate the production budget in units

Reference no: EM132517598

Reference no: EM132517598

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