Retro, Inc

question 62

Essay

Retro, Inc., produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows: Each unit requires three pounds of material costing £2 per pound. The beginning inventory of raw materials is 2,500 pounds, and the company wants to have 4,500 pounds of material in inventory at the end of the month. Each unit requires one hour of direct labour time, which is billed at £8 per hour.
Required:
a.
Prepare a production budget for the first month.
b.
Prepare a direct materials purchases budget for the first month.

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Definitions:

1933 To 1941

A period in world history characterized by the rise of totalitarian regimes, the end of the Great Depression through various economic reforms, and the lead-up to World War II.

Second Term

A subsequent period of office for an elected official, such as a president or governor, immediately following the first term.

Franklin Roosevelt

The 32nd President of the United States who led the country during the Great Depression and World War II, implementing the New Deal.

Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.