Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. Smith Company projects sales of 500 chairs per month. The production costs are as follows: Direct materials per chair $ 60 Direct labor per chair 30 Manufacturing overhead per chair 20 White Company has 30 chairs in inventory at the beginning of January and wants to have an ending inventory equal to 30% of next month’s sales. Selling and administrative expenses for this product line are $20,000 per month. What is the projected total sales revenue for the executive chair during January? ANSWER $110,000 $100,000 $30,000 $150,000 I DON'T KNOW YET
Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. Smith Company projects sales of 500 chairs per month. The production costs are as follows: Direct materials per chair $ 60 Direct labor per chair 30 Manufacturing overhead per chair 20 White Company has 30 chairs in inventory at the beginning of January and wants to have an ending inventory equal to 30% of next month’s sales. Selling and administrative expenses for this product line are $20,000 per month. What is the projected total sales revenue for the executive chair during January? ANSWER $110,000 $100,000 $30,000 $150,000 I DON'T KNOW YET
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. Smith Company projects sales of 500 chairs per month. The production costs are as follows:
|
Direct materials per chair |
$ 60 |
|
Direct labor per chair |
30 |
|
Manufacturing |
20 |
White Company has 30 chairs in inventory at the beginning of January and wants to have an ending inventory equal to 30% of next month’s sales. Selling and administrative expenses for this product line are $20,000 per month.
What is the projected total sales revenue for the executive chair during January?
ANSWER
-
$110,000
-
$100,000
-
$30,000
-
$150,000
-
I DON'T KNOW YET
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