Ever Company budget sales at S2,000,000 and expects a net income before tax of 10% of sales. Expenses are estimated as follows: Selling 15% of sales Administrative 9% of sales Finance 1% of sales Labor is expected to be 40% of the total manufacturing costs. Factory overhead is to be applied at 75% of direct labor costs. Inventories are to be as follows: January 1 December 31 Materials S250,000 S300,000 Work-in-Process 200,000 320,000 Finished goods 350,000 400,000 Required: a. how much will be cost of good sold? b. how much will the total manufacturing cost? c. how much will be the factory overhead? d. how much will be the material purchases?

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