Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Smith Company manufactures lawn mowers. The firm had the following inventories. Jan 1, 2018 Dec 3, 2018 Finished goods $142,000 $ 92,000 Work in process

Smith Company manufactures lawn mowers. The firm had the following inventories.

Jan 1, 2018 Dec 3, 2018

Finished goods $142,000 $ 92,000

Work in process $262,000 $426,000

Materials $114,000 $ 90,000

The following additional manufacturing data pertains to operations.

Material purchased $150,000 Property Taxes Factory $ 7,500

Direct labor $400,000 Utilities-Factory $15,000

Depreciation-Factory Equip $ 25,000 Insurance-Factory $ 4,500

Factory Supervisor Salaries $227,500 Selling and Admin Expense $200,000

Alex Company applies manufacturing overhead at the rate of 60 percent of direct-labor cost.

Required:

Compute the following amounts for the year of 2018.

-Assume Alex Company wants to achieve a Gross Profit of 30% of Sales -- Compute the total dollar amount of Sales needed. -Show Alex Company's Income Statement

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

Step: 3

blur-text-image

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

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

10th edition

78025664, 978-0078025662

More Books

Students also viewed these Accounting questions

Question

6. Identify characteristics of whiteness.

Answered: 1 week ago

Question

9. Explain the relationship between identity and communication.

Answered: 1 week ago