Superb Professors

Problem 2 Cory Hibachi Grills manufactures grills to be sold in local hardware stores. It expects to sell 31,000 grills in 2019. The company had enough beginning inventory of direct materials to produce 3,000 grills and wants to maintain an ending direct materials inventory to produce 7,000 grills. Beginning inventory of finished grills totaled 2,500 grills and the company had a desired ending inventory of finished grills of 3,500 grills. The grills sell for $89 each. Direct material cost is $10.50 per grill, direct labor cost is $9.30 per grill, and factory overhead is $2.00 per grill. 1. Determine the budgeted sales for 2019 (in $) 2. Determine the budgeted production for 2019 in grills) 3. Determine the budgeted cost of goods sold for 2019 (in $) 4. Determine the budgeted cost for DM, DL, & FOH for 2019.

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