Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#32 Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw

#32 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 $40. Wesley expects the following unit sales:

January 2,100
February 2,500
March 3,000
April 2,800
May 2,300

Wesleys ending finished goods inventory policy is 35 percent of the next months sales. Suppose each handisaw takes approximately 0.45 hours to manufacture, and Wesley pays an average labor wage of $15.50 per hour. Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $6.00 each. The company has an ending direct materials inventory policy of 10 percent of the following months production requirements. Materials other than the housing unit total $4.00 per handisaw. Manufacturing overhead for this product includes $66,000 annual fixed overhead (based on production of 21,000 units) and $1.10 per unit variable manufacturing overhead. Wesleys selling expenses are 6 percent of sales dollars, and administrative expenses are fixed at $14,000 per month. Required: 1. Compute the budgeted cost of goods sold for the first quarter. 2. Compute the budgeted selling and administrative expenses for the first quarter. 3. Complete the budgeted income statement for the handisaw product for the first quarter.

image text in transcribedI keep messing up on the income statement, budgeted doesn't want to add up, Does this change or another item needs to be added to the income statement? Please answer as best as possible so I can figure out what I'm missing.

Complete the budgeted income statement for the handisaw product for the first quarter. (Round direct material, direct labor and overhead costs per unit to 2 decimal places. Round final answers to the nearest dollar amount.) WESLEY POWER TOOLS Budgeted Income Statement For the Quarter Ending March January February March 1st Quarter Total Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Profit $ 0 Budgeted Selling and Administrative Expenses Budgeted Net Operating Income $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Costing And Management

Authors: Riad Izhar, Janet Hontoir

2nd Edition

9780198328230

More Books

Students also viewed these Accounting questions

Question

Calculate the payback time.

Answered: 1 week ago