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