Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 18,000 units, respectively, and the unit selling price is $50? $1,400,000 b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? 29,000 c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $ 344,000 d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $19? $0 e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $57,000 and variable manufacturing overhead is $2.50 per direct labor hour?

Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 18,000 units, respectively, and the unit selling price is $50? $1,400,000 b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? 29,000 c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $ 344,000 d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $19? $0 e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $57,000 and variable manufacturing overhead is $2.50 per direct labor hour?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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