Sellars Inc. manufactures widgets. At 30 June, the company had 2000 widgets in inventory. The company's policy is to maintain a widget ending inventory equal to 10 per cent of next month's sales. In addition, each widget manufactured requires 6 minutes of assembly and inspecting time at a cost of $.25 per minute. The company expects the following sales activity for the third quarter of the year: July 25 000 units August 45 000 units September 40 000 units What is the projected direct labour cost for August? $57 000 $61 500 $66 750 $55 800

Sellars Inc. manufactures widgets. At 30 June, the company had 2000 widgets in inventory. The company's policy is to maintain a widget ending inventory equal to 10 per cent of next month's sales. In addition, each widget manufactured requires 6 minutes of assembly and inspecting time at a cost of $.25 per minute. The company expects the following sales activity for the third quarter of the year: July 25 000 units August 45 000 units September 40 000 units What is the projected direct labour cost for August? $57 000 $61 500 $66 750 $55 800

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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