Reference no: EM132520230

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered.

Projected sales in units                                    1,890 cases

Selling price per case                                          240

Inventory at the beginning of the quarter             150 cases

Target inventory at the end of the quarter            100 cases

Direct labor hours needed to produce one case       2 hours

Direct labor wages                                           $10 per hour

Direct materials cost per case                            $8

Variable manufacturing overhead cost per case     $6

Fixed overhead costs for the upcoming quarter    $220,000

Question a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units.

Question b. What is Mercury's budgeted variable manufacturing cost per case?

Question c. Prepare Mercury's manufacturing cost budget.

Question d. What is the projected ending value of the inventory account?

Required A

What is the projected ending value of the Inventory account? Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

Ending inventory value:

Require B

What is Mercury's budgeted variable manufacturing cost per case?

Total variable cost per case:

Required C

Prepare Mercury's manufacturing cost budget. (Round your cost per unit answer to 2 decimal places.)

Variable manufacturing costs:

Total variable manufacturing costs

Total costs of finished goods manufactured

Required D

What is the projected ending value of the Inventory account? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)