Clic, Inc Provides the Following Data for the Next Four Months

question 16

Essay

Clic, Inc. provides the following data for the next four months:
Desired Ending Inventory:
Raw Materials = 30% of next month's production needs
Finished Goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs.
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
Required:
(a) Calculate the budgeted production for April and May.
(b) Calculate the amount of purchases of raw materials in pounds for April and May.
(c) Calculate the cost of direct labor for May.

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Definitions:

Shelf Life

The maximum time a product can be stored under specified conditions and still meet performance requirements.

Sterile Packages

Packaging methods that ensure the contents are free from microorganisms, often used for medical supplies.

Personal Protective Equipment

Equipment worn to minimize exposure to hazards that cause serious workplace injuries and illnesses.

Incomplete Sterilization

A process failure where medical tools, devices, or supplies are not fully sterilized, potentially leaving harmful microorganisms intact.