Bridgeport Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2017.

		January		February		March		April		May
Estimated unit sales		10,200		11,700		8,600		8,100		8,200
Sales price per unit		$50.00		$48.20		$48.20		$48.20		$48.20
Direct labor hours per unit		2.0		2.0		1.7		1.7		1.7
Wage per direct labor hour		$8.00		$8.00		$8.00		$9.00		$9.00

Bridgeport has a labor contract that calls for a wage increase to $9.00 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Bridgeport expects to begin the year with 14,880 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following months sales, plus 40% of the second following months sales.

CALCULATOR PRINTER VERSION