Question
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
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