MC TOOLS makes hammers. The requirements to make 1 hammer are:

Materials .5 pounds at a cost of $9 per pound

Labor 15 minutes per hammer at a cost of $10 per hours

Variable Overhead is assigned at 25% of labor and fixed overhead is $140,000 monthly

MC TOOLS sales in March were 500,000 units

Projected Sales are:

An increase of 1% in April (from march sales)

May sales projection are 510,000 units

MC TOOLS finished goods inventory policy is to keep in inventory 40% of next month sales. Actual inventory is 190,000 units. MC TOOLS raw materials inventory policy is to keep in inventory 50% of next month production. Actual inventory is 260,000 pounds. May production is expected to be 510,000 units

REQUIRED:

CALCULATE APRIL SALES

CALCULATE UNITS TO PRODUCE IN APRIL

CALCULATE DIRECT MATERIALS COST IN APRIL

CALCULATE DIRECT LABOR COST IN APRIL

CALCULATE TOTAL OVERHEAD COST IN APRIL

CALCULATE PRODUCT COST IN APRIL