Question
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2014: Beginning inventory Ending inventory Direct materials 1,000 units 1,000 units Work-in-process inventory 0 units 0 units Finished goods inventory 400 units 500 units Show computations to receive credit
A. On the 2015 budgeted income statement, what amount will be reported for sales? (2 points)
B. How many ceramic vases need to be produced in 2015? (4 points)
C. On the 2015 budgeted income statement, what amount will be reported for cost of goods sold? (3 points)
D. What are the 2015 budgeted costs for: Direct materials Direct manufacturing labor Manufacturing overhead (3 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started