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  • 1.  BUDGETED FINISHED GOODS

    Posted 25 days ago
    Dear Friends,
    I couldnt solve this problem..

    Scarborough Corporation manufactures and sells two products, Thingone and Thingtwo. Scarborough's budget department gathered the following data to project sales and budget requirements:
    Projected Sales
    Product
    Units
    Price
    Thingone
    60,000
    $  70
    Thingtwo
    40,000
    100
    Projected Inventories -- in units
    Expected
    Desired
    Product
    January 1
    December 31
    Thingone
    20,000
    25,000
    Thingtwo
    8,000
    9,000
    To produce one unit of Thingone and Thingtwo, the following raw materials are used:
    Raw Material
    Unit
    Thingone
    Thingtwo
    A
    lb.
    4
    5
    B
    lb.
    2
    3
    C
    each
    0
    1
    Projected data for the year with respect to raw materials are as follows:
    Anticipated
    Expected
    Desired
    Raw
    Purchase
    Inventories
    Inventories
    Material
    Price
    1/1
    12/31
    A
    $8
    32,000 lb.
    36,000 lb.
    B
    5
    29,000 lb.
    32,000 lb.
    C
    3
    6,000 each
    7,000 each
    Projected direct labor requirements and rates are as follows:
    Thingone -- 2 hours per unit at $3 per hour
    Thingtwo -- 3 hours per unit at $4 per hour
    Overhead is applied at the rate of $2 per direct labor hour.
    What is Scarborough's budgeted finished goods inventory for Thingtwo in dollars?


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    TIMUCIN ONER
    Director/Manager
    ANTALYA
    Turkey
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