Gerrad Manufacturing has projected sales of its product for the next six months as follows:

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Description

Gerrad Manufacturing
has projected sales of its product for the next six months as follows:
January 300 units
February 700 units
March 1,000 units
April 900 units
May 400 units
June 300 units

The finished product requires 3 pounds of raw material and 10 hours of direct labor.
Gerrad tries to maintain a Finished Goods ending inventory equal to the next two
months of sales and a Raw Material ending inventory equal to one-half of the current
month’s production needs. January’s beginning inventories are expected to conform to
company policy.
a. Prepare a production budget for February, March, and April.
b. Prepare a forecast of the units and cost of raw material that will be required for
February, March, and April. Th e expected cost per pound of raw material is expected
to be $2 in February, $2.30 in March, and $2.40 in April.
c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March,
and April.


1. Prepare a Production Budget for February, March, and April; include a totals column for the period.
2. Prepare a forecast (Purchases Budget) of the units and cost of raw material that will be required for February, March, and April; include a totals column for the period.
3. Prepare a Direct Labor Budget for February, March, and April; include a totals column for the period.
4. All schedules should be in Excel and in a format appropriate for presentation to management.

Additional Requirements

Level of Detail: Show all work
Other Requirements:

-Prepare a Production Budget for February, March, and April; include a totals column for the period.

– Prepare a forecast (Purchases Budget) of the units and cost of raw material that will be required for February, March, and April; include a totals column for the period.
– Prepare a Direct Labor Budget for February, March, and April; include a totals column for the period.
– All schedules should be in Excel and in a format appropriate for presentation to management.

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