Tools manufactures wide variety of tools and accessories. One of its more popular items is a cordless power mandisaw. Each handisaw sells for $42. Wesley expects the following unit sales: January February March April May 3,400 3,600 4,100 3,900 3,300 Wesley's ending finished goods inventory policy is 20 percent of the next month's sales Suppose each handisaw takes approximately 0.75 hour to manufacture, and Wesley pays an average labor wage of $18 per hour. D Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.50 each. The company has ending direct materials Inventory policy of 25 percent of the following month's production requirements. Materials other than the plastic components total $4.50 per handisaw. Manufacturing overhead for this product includes $75,000 annual fixed overhead (based on production of 27,000 units) and $1.20 unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixe at $18,000 per month.

Tools manufactures wide variety of tools and accessories. One of its more popular items is a cordless power mandisaw. Each handisaw sells for $42. Wesley expects the following unit sales: January February March April May 3,400 3,600 4,100 3,900 3,300 Wesley's ending finished goods inventory policy is 20 percent of the next month's sales Suppose each handisaw takes approximately 0.75 hour to manufacture, and Wesley pays an average labor wage of $18 per hour. D Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.50 each. The company has ending direct materials Inventory policy of 25 percent of the following month's production requirements. Materials other than the plastic components total $4.50 per handisaw. Manufacturing overhead for this product includes $75,000 annual fixed overhead (based on production of 27,000 units) and $1.20 unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixe at $18,000 per month.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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