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JC Floor Design makes ceramic tiles December sales were: 500.000 units Selling price $2 per unit 1.000.000 total sales The Marketing Department, projects sales to

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JC Floor Design makes ceramic tiles December sales were: 500.000 units Selling price $2 per unit 1.000.000 total sales The Marketing Department, projects sales to increase by 5% in January February sales will be 15.000 units less than January March sales will be 3% higher than February sales April sales will be the 5.300 units less than march The price is not expected to increase JC Inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units Clay the material to make the tiles cost $.50 per pound and each tile requires 6 pound. Actual clay inventory is 60.000 pounds and the inventory policy is to maintain an inventory equat to 25% of next month production requirement Aprt production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000 Each tile requires 10 hours and the labor hourly rate is $8.00 per hour Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly Selling and administrative expenses are expected to be Administrative salaries $15.000 per month Sales salaries $12.000 per month Sales commissions 10% of sales 70% of sales are cash sales and the remaining are collected in the next month Material are paid 60% cash and the remaining the next month The company has the following obligations 100,000 in dividends will be paid in February A new machine will be acquired in January with a cost of 250.000 A short-term loan with an outstanding balance of $150.000 is used to manage the cash position Interest on the short term loan are 1 monthly Toxes of lost quarter were $240.000 and will be paid in March. The company tax rates 35 and oves are sold in the next quarter REQUIRED: Compute the materlals to be purchased In March REQUIRED: Compute Direct Labor Cost for January REQUIRED: Compute Total Overhead for the quarter REQUIRED: Compute Product Cost REQUIRED: Compute Total sales expenses for the quarter REQUIRED: Compute Selling and Adminlstrative expenses for February

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