The Budget Components for Harper Company for the Quarter Ended

Essay

The budget components for Harper Company for the quarter ended June 30 appear below. Harper sells trash cans for $12 each. Budgeted production for the next four months is:
Harper desires to have trash cans on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Harper had 4,000 completed units on hand. The number of trash cans to be produced in April and May are 26,000 and 46,000, respectively. Seven pounds of plastic are required for each trash can. At the end of each month, Harper desires to have 10 percent of the following month's production material needs on hand. At March 31, Harper had 18,200 pounds of plastic on hand. The materials used in production costs $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Instructions
Compute the cost of the plastic inventory at the end of May.