Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $62. Wesley expects the following unit sales: January February March April May 5,400 5,600 6,100 5,900 5,300 Wesley's ending finished goods inventory policy is 30 percent of the next month's sales. Suppose each handisaw takes approximately 0.60 hour to manufacture, and Wesley pays an average labor wage of $24 per hour. Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.50 each. The company has an ending direct materials inventory policy of 30 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 $78,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month. Required: Compute the following for the first quarter: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Direct Materials Purchases for the Plastic Housings 4. Budgeted Direct Labor Cost January
Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $62. Wesley expects the following unit sales: January February March April May 5,400 5,600 6,100 5,900 5,300 Wesley's ending finished goods inventory policy is 30 percent of the next month's sales. Suppose each handisaw takes approximately 0.60 hour to manufacture, and Wesley pays an average labor wage of $24 per hour. Each handisaw requires two plastic components that Wesley purchases from a supplier at a cost of $3.50 each. The company has an ending direct materials inventory policy of 30 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 $78,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month. Required: Compute the following for the first quarter: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 1. Budgeted Sales Revenue 2. Budgeted Production in Units 3. Budgeted Cost of Direct Materials Purchases for the Plastic Housings 4. Budgeted Direct Labor Cost January
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Transcribed Image Text:Wesley Power Tools manufactures a wide variety of tools and accessories. One of its
more popular items is a cordless power handisaw. Each handisaw sells for $62.
Wesley expects the following unit sales:
January
February
March
April
May
5,400
5,600
6,100
5,900
5,300
Wesley's ending finished goods inventory policy is 30 percent of the next month's
sales.
Suppose each handisaw takes approximately 0.60 hour to manufacture, and Wesley
pays an average labor wage of $24 per hour.
Each handisaw requires two plastic components that Wesley purchases from a
supplier at a cost of $3.50 each. The company has an ending direct materials
inventory policy of 30 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 $78,000 annual fixed overhead
(based on production of 27,000 units) and $1.20 per unit variable manufacturing
overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative
expenses are fixed at $18,000 per month.
Required:
Compute the following for the first quarter:
Note: Do not round intermediate calculations. Round your final answers to the
nearest whole dollar.
1. Budgeted Sales Revenue
2. Budgeted Production in Units
3. Budgeted Cost of Direct Materials Purchases for the Plastic Housings
4. Budgeted Direct Labor Cost
January
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education