Eppes Plating Company plans to sell 120,000 units of a certain product line at a price of $6. There are 20,000 units of the product in the inventory at January 1 and the inventory is to be increased 20% during the year. Two types of materials are used to make the product. Four pounds of Material A each costing 30 cents are required for each unit of product, and two pounds of Material B each costing 40 cents are required for each unit of product. On January 1 there are 10,000 pounds of Material A in inventory and 5,000 pounds of Material B. Plans for the year indicate that 12,000 pounds of Material A and 6,000 pounds of Material B are to be in the inventory on Dec 31

each unit of product can be produced in 15 minutes of direct labor time. Direct labor is paid at the rate of $8.00 ab hour. The variable manufacturing overhead varies at the tare of 0.50 per direct labor hour and the fixed manufacturing overhead for the year is estimated at $140000.

(1) How many units of output does the firm plan to make during the year?

(2) each unit is expected to sell for $50. Currently 25% of the sales are in cash. Of the credit sales, 90% are paid in the year of the sale. the remainder is paid in the following year. The accounts receivable at the beginning of the year Jan 1 was $13000. What are the cash receipts for the year?

(3) Assume the answer to question 1 is 122000 units to be produced,so what is the total dollar cost of materials purchased during the year? and what is the total labor cost for the year? and what is the total overhead budged for the year?