Johnson last month (December) sales were 20,000 units @ $50. The company estimates an increase of 1.5% in sales for January. An increase of 200 units forFebruary (compared to January) and a reduction of 100 units for March (compared to February. The selling price is not expected to change. April sales projectionsare a 5% Increase from December sales.INVENTORY POLICYFINISHED GOODS-maintain an ending inventory equal to 30% of next month salesDecember finished goods ending Inventory was 7,000 unitsDIRECT MATERIALS-maintain an ending inventory equal to 40% of next month productionApril production is estimated at 21,000Materials cost is $10 per pound. Each unit requires 25 pounds of materials and actual inventory is 1600 poundsLabor Cost is $14 per hour and each unit requires 30 minutes of labor.Fixed overhead is $62.517 monthly and variable overhead is 120% of direct labor cost.OTHER EXPENSESSelling salaries are $40,000 monthly, commissions on sales are 5% and administrative expenses are $70,000 monthlyCALCULATE PROJECTED RAW MATERIALS INVENTORY (FOR THE BALANCE SHEET)PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACESDON'T USE COMMA SEPARATORS

A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Johnson last month (December) sales were 20,000 units @ $50. The company estimates an increase of 1.5% in sales for January. An increase of 200 units for February (compared to January) and a reduction of 100 units for March (compared to February. The selling price is not expected to change. April sales projection are a 5% increase from December sales INVENTORY POLICY FINISHED GOODS-maintain an ending inventory equal to 30% of next month sales December finished goods ending inventory was 7,000 units DIRECT MATERIALS-maintain an ending inventory equal to 40% of next n next month production Aprill production is estimated at 21.000 Materials cost is $10 per pound. Each unit requires 25 pounds of materials and actual inventory is 1600 pounds Labor Cost is $14 per hour and each unit requires 30 minutes of labor. Fixed overhead is $62.517 monthly and variable overhead is 120% of direct labor cost. OTHER EXPENSES Selling salaries are $40,000 monthly, commissions on sales are 5% and administrative expenses are $70,000 monthly CALCULATE PROJECTED RAW MATERIALS INVENTORY (FOR THE BALANCE SHEET) PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES DON'T USE COMMA SEPARATORS

Johnson last month (December) sales were 20,000 units @ $50. The company estimates an increase of 1.5% in sales for January. An increase of 200 units for February (compared to January) and a reduction of 100 units for March (compared to February. The selling price is not expected to change. April sales projection are a 5% increase from December sales INVENTORY POLICY FINISHED GOODS-maintain an ending inventory equal to 30% of next month sales December finished goods ending inventory was 7,000 units DIRECT MATERIALS-maintain an ending inventory equal to 40% of next n next month production Aprill production is estimated at 21.000 Materials cost is $10 per pound. Each unit requires 25 pounds of materials and actual inventory is 1600 pounds Labor Cost is $14 per hour and each unit requires 30 minutes of labor. Fixed overhead is $62.517 monthly and variable overhead is 120% of direct labor cost. OTHER EXPENSES Selling salaries are $40,000 monthly, commissions on sales are 5% and administrative expenses are $70,000 monthly CALCULATE PROJECTED RAW MATERIALS INVENTORY (FOR THE BALANCE SHEET) PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES DON'T USE COMMA SEPARATORS

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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