The We Cheat-em and Howe Company incorporated on January 1, 2022 and commenced operations soon after They issued 10,000 common shares for $25 each, cash. They manufacture three version of Widgets - Widget #1, Widget#2 and Widget#3. Their estimated sales are as follows: Widget#1-10,000 units, Widget #2 -7,500 units and Widget#3-5,000 widgets. Widgetes sells for $250 per widget, Widget#2 sells for $200 per widget and Widget#3 sells for $150 per widget Since this is their first year of operations, there is no beginning inventory for finished goods. However, the company desires the following finished goods ending inventory: Widget#1 - 500 units, Widget#2-600 units and Widget 3-700) Units Sales are broken down into the following categories - 60% of sales are collected in cash and 40% of the sales are made on a credit card. The credit card charges a 4.5% service charge, with 70% of the credit card sales are collected in the current period and 30% in the following period. 50% of the raw material purchases are paid for during the period of purchase, 40% paid in the following penou Raw materials are comprised of wood and glue and cost $30.00 and $15.00 respectively Raw materials are used n production as follows: Widget #1 - 3 units of wood, Widget #2 - 2 units of woodd Widget#3 - 1 unit of wood Widget #1 - 1.5 units of glue, Widget#2 - 1 unit of glue and Vidget#3 - 0.5 units of glue Widget#1 .75 hours of cutting, Widget #2 - .5 hours of cutband Widget#3 -0.5 hours of cutting Widget#1 - 1.25 hours assembling, Widget#2 - 1 hour of assering and Widget#3-.75 hours of assembling Direct Labour Costs are paid in the period incurred and are $12 per h for cutting and $16 per hour for assembling. Wood has a cost of $30 per unit and Glue costs $15 per unit Manufacturing equipment cost $35,000, salvage value $5,000, 5 year useful life All other costs (excluding depreciation) are paid in the period incurred as follows: Salary expense $725,500, Sales Commissions $175,900, Sales Supplies $125,450, Rent $75,000 and miscellaneous expenses of $65,000. Manufacturing overhead is applied based on direct labour hours, for cutting and sewing, at $5.00 per hour. Note: the manufacturing overhead includes depreciation of $6,000.