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100. Schmidt Corporation manufactures card tables. The company has a policy of maintaining a finished goods inventory equal t
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Answer #1

Direct labor cost per unit = $13 X 3 = $39

Budgeted labor cost for June $136500

No of units produced in June = $136500/$39 = 3500 Units

No of units of inventory at the beginning of the June = 3000 X 40% = 1200 Units

So, Closing Inventory for June = 1200 Units +3500 Units -3000 Units = 1700 Units

Opening of July inventory is 1700 Units , It is 40% of July sales, So July sales = 1700 X 100/40 = 4250 Units

July Budgeted sales 4250 Units ( Option B is correct)

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