Jordan INC manufactures a product with a selling price of $50 per unit. Units and monthly cost data follow:

Variable:

Selling and administrative=$5 per unit sold

Direct materials=10 per unit manufactured

Direct labor=10 per unit manufactured

Variable manufacturing overhead=5 per unit manufactured

Fixed: Selling and administrative=$20,000 per month

Manufacturing (including depreciation of $10,000)=30,000 per month

Jordan pays all bills in the month incurred. All sales are on account with 50 percent collected the month of sale and the balance collected the following month. There are no sales discounts or bad debts. Jordan desires to maintain an ending finished goods inventory equal to 20 percent of the following month's sales and a raw materials inventory equal to 10 percent of the following month's production. January 1, 2019, inventories are in line with these policies. Actual unit sales for December and budgeted unit sales for January, February, and March of 2019 are as follows:

JORDAN INCORPORATED: Sales Budget For the Months of January, February, and March 2019

Month

December- Sales - Units- 5,250

January- Sales - Units- 6,000

February- Sales - Units-9,000

March- Sales - Units-9,000

Dec-Sales - Dollars-$262,500

Jan-Sales - Dollars-$300,000

Feb-Sales - Dollars-$450,000

Mar-Sales - Dollars-$450,000

Additional information:

• The January 1 beginning cash is projected as $3,000.
• For the purpose of operational budgeting, units in the January 1 inventory of finished goods are valued at variable manufacturing cost.
• Each unit of finished product requires one unit of raw materials.
• Jordan intends to pay a cash dividend of $7,000 in January.

NOTE: For the entire problem - do not use any negative signs with your answers unless appropriate for net income(loss) or ending balance.

Section #3

JACOBS INCORPORATED Manufacturing Cost Budget: For the Month of January 2011

Variable costs?

Direct materials ?

Direct labor?

Variable manufacturing overhead ?

Total variable costs?

Fixed manufacturing overhead ?

Total manufacturing costs$ ?