The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: 2017 Projected Sales Units Product Price $160 S758 Thingone Thingtwo 69,000 44,000 2017 Inventories in Units Expected Target January 1, 2017 Product December 31, 2017 Thingone Thingtwo 29,000 24,000 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo pound pound each Projected data for 2017 for direct materials are: Expected Inventories January 1, 2017 36,000 Ib. 31,000 Ib. 9,000 units Target Inventories December 31, 2017 Direct Material Anticipated Purchase Price $13 38,000 lb. 34,000 lb. 12,000 units Projected direct manufacturing labor requirements and rates for 2017 are: Product Hours per Unit Rate per Hour $13 Thingone Thingtwo 18 Manufacturing overhead is allocated at the rate of $24 per direct manufacturing labor-hour.

The Chen Corporation manufactures and sells two products: Thingone and Thingtwo. In July 2016, Chen's budget department gathered the following data to prepare budgets for 2017: 2017 Projected Sales Units Product Price $160 S758 Thingone Thingtwo 69,000 44,000 2017 Inventories in Units Expected Target January 1, 2017 Product December 31, 2017 Thingone Thingtwo 29,000 24,000 7,000 8,000 The following direct materials are used in the two products: Amount Used per Unit Direct Material Unit Thingone Thingtwo pound pound each Projected data for 2017 for direct materials are: Expected Inventories January 1, 2017 36,000 Ib. 31,000 Ib. 9,000 units Target Inventories December 31, 2017 Direct Material Anticipated Purchase Price $13 38,000 lb. 34,000 lb. 12,000 units Projected direct manufacturing labor requirements and rates for 2017 are: Product Hours per Unit Rate per Hour $13 Thingone Thingtwo 18 Manufacturing overhead is allocated at the rate of $24 per direct manufacturing 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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