Question

Bradford, Inc., expects to sell​ 9,000 ceramic vases for​ $21 each. Direct materials costs are​ $3, direct manufacturing labor is​ $12, and manufacturing overhead is​ $3 per vase. The following inventory levels apply to​ 2019: Beginning inventory Ending inventory Direct materials ​3,000 units ​3,000 units Workminusinminusprocess inventory 0 units 0 units Finished goods inventory 300 units 500 units What are the 2019 budgeted production costs for direct​ materials, direct manufacturing​ labor, and manufacturing​ overhead, respectively?

Answer 1

Bradford, Inc. is expected to produce 9,200 ceramic vases to meet the sales expectations and inventory adjustments. The budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead for 2019 are $27,600, $110,400, and $27,600 respectively.

Step-by-step explanation:

The budgeted production costs for Bradford, Inc. in 2019 for direct materials, direct manufacturing labor, and manufacturing overhead can be calculated based on the expected sales and costs per unit. Since Bradford, Inc. expects to sell 9,000 ceramic vases, and there is no change in work-in-process inventory, we only need to consider the change in finished goods inventory to calculate the budgeted production.

Firstly, we calculate the number of units that need to be produced. With a beginning inventory of 300 units and an ending inventory of 500 units, and expected sales of 9,000 units, Bradford, Inc. needs to produce:

Units to be produced = Expected sales + Ending inventory - Beginning inventory
= 9,000 units + 500 units - 300 units
= 9,200 units

Now, we can calculate each cost component:

• Direct materials cost: 9,200 units × $3 per unit = $27,600
• Direct manufacturing labor cost: 9,200 units × $12 per unit = $110,400
• Manufacturing overhead cost: 9,200 units × $3 per unit = $27,600

Thus, the budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead for 2019 are $27,600, $110,400, and $27,600 respectively.

Answer 2

Direct material= $19,500

Direct labor= $78,000

Overhead= $19,500

Step-by-step explanation:

Giving the following information:

Direct materials costs are​ $3, direct manufacturing labor is​ $12, and manufacturing overhead is​ $3 per vase.

The following inventory levels apply to​ 2019:

Beginning inventory - Ending inventory

Direct materials ​3,000 units ​3,000 units

Finished goods inventory 300 units 500 units

Sales= 9,000 units

First, we need to determine the number of units to be produced:

Production= sales + desired ending inventory - beginning inventory

Production= 9,000 + 500 - 3,000= 6,500

Purchases (direct material)= produciton + desired ending inventory - beginning inventory

Purchases= 6,500 + 3,000 - 3,000= 6,500

Now, we can calculate the budgeted costs:

Direct material= 3*6,500= $19,500

Direct labor= 12*6,500= $78,000

Overhead= 3*6,500= $19,500