David,IncIs Preparing Its Master Budget for the Second Quarter Finished Goods Inventory on March 31: 120 Units
Raw Materials

question 67

Essay

David,Inc.is preparing its master budget for the second quarter.The following sales and production data have been forecasted:
$\begin{array}{llr} &\text { April}&\text { May }&\text {June}&\text { July }&\text {August }\\\text { Unit sales } & 400 & 500 & 520 & 480 & 540 \end{array}$

Finished goods inventory on March 31: 120 units
Raw materials inventory on March 31: 450 pounds
Desired ending inventory each month:
Finished goods:30% of next month's sales
Raw materials:25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lb.
Number of direct labor hours to produce each unit: 3 hours
Labor rate per hour: $10
(a)How many units should be produced during April and May?
(b)How many pounds of raw materials should be purchased in April?
(c)What is the budgeted labor cost for April?

Recognize the significance of status-role complex within the social system.

Comprehend Talcott Parsons’ views on systemic evolution including differentiation and integration.

Understand the function of the political subsystem in achieving societal goals and maintaining social order.

Understand the key concepts and theories of Talcott Parsons regarding the social system.

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Definitions:

Corporate Income Taxes

Taxes imposed on the net income (profit) of corporations, determined by the legal jurisdiction of the business operations.

Depreciation

Depreciation refers to the reduction in the value of an asset over time due to wear and tear, obsolescence, or age.

Capital Equipment

Long-lasting goods that are utilized in the production of other goods or services, such as machinery, buildings, and vehicles.

Inventories

Stocks of goods and materials that businesses maintain to meet customer demand without delays.