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What is scott company expected production for july

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Reference no: EM133158948

Question - Expected sales for Scott Company for the third quarter of next year are as follows:

 

July

August

September

Units

23,000

17,000

21,000

Management wants ending monthly inventory to be of 25% of the following month's sales.

Scott's budgeted labour cost components are:

Direct labour per unit $7.20

Indirect factory labour per unit $4.80

Administration $6,000 per month

Sales commissions per unit $3.50

Required -

a. What is Scott Company's expected production for July?

b. Prepare a total labour budget for Scott for July.

Reference no: EM133158948

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