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FILE HOME PAGE LAYOUT DAIA REEW PROTECTED VIEW Be careful -files from the Internet can contain vituses. Unless you need to edit, it's safer to s A1 B C DE 1 1. Sales 2016 Actual Sales 2017 Estimated Sales Nov Dec JanFebMar AprMay 7,835 7,970 7,450 7,090 4 Units 8,320 9,070 10,120 6 7 The selling price per unit has remained constant for the past year and is expected to remain unchanged throughout the first quarter of 2017 at an amount of $68.99 9 2. Cash Collection Policy 10 Total sales consist of the following 11 Cash sales: 5% 95% 12 Credit sales: 13 14 Credit collections are as follows: 15 In the month following the month of sale: 16 In the second month following the month of sale: 25% 17 The Company does not have any bad debts. 18 19 3. Production Policy 20 The Company's policy is to produce during each month, enough units to meet the current 21 month's sales as well as a desired inventory at the end of the month which should be 22 equal to 23% of next month's estimated sales. On December 31, 2016, the finished 23 goods inventory consisted of 1,714 units at a cost of $50.40. 24 25 4. Direct Materials Purchasing Policy 26 Each month the Company purchases enough direct materials to meet that month's 27 production requirements and an amount equal to 25% of the next month's estimated 28 production requirements. Each unit of finished product requires 2.83 pounds of direct 29 materials at a cost of $1.38 per pound. On December 31, 2016, the direct materials 30 inventory consisted of 5,213 lbs. at a cost of $1.38. 31 75% Requirements Facts Sheet Balance Sheet OType here to searchExplanation / Answer
Selling and administrative expenses:
Jan Feb Mar Apr May a Sales units 7,450.00 7,090.00 8,320.00 9,070.00 10,120.00 b Selling price 68.99 68.99 68.99 68.99 68.99 c=a*b Sales 5,13,975.50 4,89,139.10 5,73,996.80 6,25,739.30 6,98,178.80 Variable expenses: d=a*0.8 Freight out 5,960.00 5,672.00 6,656.00 7,256.00 8,096.00 e=c*1% Commission 5,139.76 4,891.39 5,739.97 6,257.39 6,981.79 A Total (A) 11,099.76 10,563.39 12,395.97 13,513.39 15,077.79 Fixed expenses: Salaries 8,700.00 8,700.00 8,700.00 8,700.00 8,700.00 Rent 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 Advertising 150.00 150.00 150.00 150.00 150.00 Insurance 250.00 250.00 250.00 250.00 250.00 Depreciation 10,050.00 10,050.00 10,050.00 10,050.00 10,050.00 Depreciation-Computer 3,000.00 3,000.00 3,000.00 3,000.00 B Total (B) 20,950.00 23,950.00 23,950.00 23,950.00 23,950.00 C=A+B Total selling and administrative expenses 32,049.76 34,513.39 36,345.97 37,463.39 39,027.79Related Questions
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