Wesley Power Tools manufactures a wide variety of tools and accessories. One of

Question

Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power hand saw. Each hand saw sells for $40. Wesley expects the following unit sales...

**** THE question is posted entirely! just the 1st pic has the set up and the questins are in the othrer pics. please hurry. im stuck and on a time crunch. I chcked all the pics with what have here,,,,, they are all there whti what i posted. thanks

)-) e | (D ezto.mhec 90% 2 Most Visited my.utrgv.edu ALGEBRA Login >> Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $40: Wesley expects the following unit sales: January February March April May 2,500 2,400 2,800 2,900 1,900 Wesley's ending finished goods inventory policy is 30 percent of the next month's sales Suppose each handisaw takes approximately 35 hours to manufacture, and Wesley pays an average labor wage of $15,50 per hour Each handisaw requires a plastic housing that Wesley rchases from a supplier at a cost of $6.00 each. The company has an ending raw materials inventory policy of 10 percent of the following month's production requirements. Materials other than the housing unit total $4.00 per handisaw Manufacturing overhead for this product includes $69,000 annual fixed overhead (based on production of 24,000 units) and $.90 per unit variable manufacturing overhead. Wesley's selling expenses are 6 percent of sales dollars, and administrative expenses are fixed at $15,000 per month Required 1. Compute the budgeted cost of goods sold for the first quarte

Explanation / Answer

1 Jan Feb Mar 1st Quarter Direct Material 25000.00 =2500*(6+4) 24000.00 =2400*(6+4) 28000.00 =2800*(6+4) 77000.00 Direct Labour 13562.50 =2500*0.35*15.5 13020.00 =2400*0.35*15.5 15190.00 =2800*0.35*15.5 41772.50 Variable Overhead 2250.00 =2500*0.9 2160.00 =2400*0.9 2520.00 =2800*0.9 6930.00 Fixed Overhead @(69000/24000)=2.875 7187.50 =2500*2.875 6900.00 =2400*2.875 8050.00 =2800*2.875 22137.50 Budgeted cost of goods sold 48000.00 46080.00 53760.00 147840.00 2 Jan Feb Mar 1st Quarter a Selling Expenses 6000 =100000*6% 5760 =96000*6% 6720 =112000*6% 18480 b Admin Expenses 15000 15000 15000 45000 c=a+b Budgeted selling & Admin Expenses 21000 20760 21720 63480 3 Jan Feb Mar 1st Quarter Budgeted Sales Revenue 100000 =2500*40 96000 =2400*40 112000 =2800*40 308000 Budgeted Cost of goods sold 48000.00 46080.00 53760.00 147840.00 Budgeted Gross Profit 52000.00 49920.00 58240.00 160160.00 Budgeted Selling & Admin Expenses 6000 5760 6720 18480 Budgeted Operating Income 46000.00 44160 51520 141680

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