Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LouAnne's Widgets has the following sales and production for the next quarter: January March February 7,000 units Sales 4,000 units 9,000 units Production 4,900 units

image text in transcribed
LouAnne's Widgets has the following sales and production for the next quarter: January March February 7,000 units Sales 4,000 units 9,000 units Production 4,900 units 7,600 units 9,300 units Company policy is at the end of any given month, LouAnne should have 30% of the following month's sales on hand in ending inventory. LouAnne strictly adheres to this policy. Each widget requires 2 pounds of gelco compound. To prevent shortages, the LouAnne would like the inventory of gelco compound on hand at the end of each month to equal 10% of the following month's production needs. The inventory on January 1 is 980 pounds. The cost per pound of gelco compound is $10. Each unit requires 1.2 DLH to manufacture and each DLH is paid $20. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH for the year is expected to be $900,000 and estimated DLH for the year are expected to be 100.000. Fixed FOH is estimated to be $53,200 per month with $5,000 of that amount being depreciation of factory equipment and building. On February's balance sheet what amount will LouAnne show as Finished Goods Inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Consolations Of Economics How We Will All Benefit From The New World Order

Authors: Gerard Lyons

1st Edition

0571307795, 9780571307791

More Books

Students also viewed these Accounting questions

Question

Understand human resources role in performance appraisals

Answered: 1 week ago