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Management has provided you with the following estimates for the coming year: Units expected to be sold: 50,000 Selling Price per unit: $100 Current Inventory

Management has provided you with the following estimates for the coming year:

Units expected to be sold: 50,000
Selling Price per unit: $100
Current Inventory of Units 0
Number of extra Units I want to keep in stock 8,000
Direct Materials Cost per unit $3
Cost of Direct Materials on hand now $4,000
Cost of extra Direct Materials I want to keep in stock $6,000
Direct Labor Hours per unit 4 hours
Cost of Direct Labor per hour $12/hour
Variable Manufacturing Overhead per unit $6/unit
Budgeted Fixed Manufacturing Overhead $500,000 (100,000 of this is Depreciation Expense)
Fixed Selling & Administrative Expenses $400,000 (100,000 of this is Depreciation Expense)
Cash on Hand at Beginning of Year $50,000
% of Sales Collected in Cash during the year 80%
% of Direct Materials Purchases Paid for during year 75%
Everything else paid for in cash

Based on the above, they have asked you to answer the following questions:

A. How many units will I need to produce?

B. How much Direct Materials will I need to buy?

C. How much will I spend on Direct Labor?

D. How much will total Manufacturing Overhead be?

E. How much cash will the company have at the end of the year?

I was able to get A) 58,000 units, B) $176,000 in DM, and C) $2,784,000 for DL. However, I am confused on how to solve for D) and E).

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