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A company expects to sell 6,000 units in April and expects sales to increase 20% each month after. The unit sales price of $8 is
- A company expects to sell 6,000 units in April and expects sales to increase 20% each month after. The unit sales price of $8 is expected to remain constant. The company wants ending finished goods inventory to be 15% of the next months sales.
- What are budgeted sales revenues for the second quarter?
- How many units will be produced in the second quarter? Round answers to nearest whole number.
- The raw materials ending inventory should be 20% of the next months production needs. Assuming each unit requires 4 feet of material that costs $3 per foot, what is the cost of May purchases?
- Monthly manufacturing overhead is budgeted to be $15,000 per month plus $8 per unit produced. What is budgeted manufacturing overhead for May?
- If each unit required 0.75 hours of labor, and the labor wage is $9/hr, what is budgeted DL cost for May?
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
