Prepare production budget-direct-materials purchase budget

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Reference no: EM131296140

Kason, Inc., expects to sell 18,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:

Beginning inventory Ending inventory

Direct materials 22,000 units 18,000 units

Work-in-process inventory 0 units 0 units

Finished goods inventory 2,200 units 2,600 units

Prepare a production budget and a direct- materials purchase budget. Each pool cue uese 3 pices of dirct material.

Reference no: EM131296140

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