iz: Assignment due 4/3 were $76,000. Selling price per unit is budgeted to be as
ID: 2462377 • Letter: I
Question
iz: Assignment due 4/3 were $76,000. Selling price per unit is budgeted to be as follows January February . March 80,100 s 82,800 s 85,500 s 77 400 May b. Sales are 3 % cash and 70% redt All credit sales are collected in te month the sale ing has a policy that states that each month's ending inventory of finished goods shold be 10% of the following mont's sales (nuts) 0% are pad forin the month f purchase, whie theremanders paid forinther orth following purchase Two emainder is paid for in the month following purchase Two pounds of direct material is needed per t labor rate per hour is $13 per hour All direct iabor unit at S1 50 per pound Endin mentory of direct materials should be 20% of next month's production needs. ing tacility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0 03. The direct the work is pertormed. The direct labor total cost for each of the upcoming three months is as follows: s paid for in the month in which t S 3.510 . 3,834 $ 3,600 overhead costs are $6,500 for factory rent, $2.,900 f for other fixed manufacturing expenses, and $1.40 per unit for variable manutacturing in these figures. All expenses are paid in the month in which they are incurred n the upcoming quarter In Januar y. Dickson Manufacturing will purchase equipment for $5,800 (cash), while February's cash All operating expenses are paid in the month in which they are incurred for the administ will be expenditure will be $11, 600 and March's cash o will be $15,800 are budgeted to be $1.20 per unit sold plus foxed o ing has a policy that the ending cash balance in each expenses of $1,400 per ative offices is budgeted t to be $4,600 for the entire quarter, which includes depreciation on new acquistions of $1 000 at pay down i- Dicksor must be at least Sl 40It has a line of credit with a local bank The company can of each month, up to a total outstanding loan eof$120,000 The interest rate on these loans is 1% per month sample nterest (not on the ine of credt balance in increments of $1.000t borrowed during the quarter t t has excess funds at the end of the quarter. The company would also pay the c accumulated interest at he end of the quarter on the funds k. The ing E OExplanation / Answer
Solution.
1.
2.
3.
Particular January February March Quarter Cash Sales 24,030 26,730 24,840 75,600 Credit sales 53,200 56,070 62,370 118,440 Total 194,040Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.