TREN PRINTER VERSION NEXT Problem 10.50 Anchor Manufacturing has forecasted sales of 6,500 units of its product 565 each for the next month Beginning inventory consists of 800 grams of directives and 400 units of finished goods. The managers would like to end the month with 1.200 grams of raw materials, no units in work in process, and 700 units in finished goods. The firm accounts for inventory using the first first out (FFO) method. Three grams of materials are required per unit of product manufactured. Each unit also requires two hours of direct labour time. Materials cost 50.7 per gram, and labour is paid $14 per hour Forecasted overhead is $14,000 plus $ per unit manicured. Sales commissions are paid it the rate of si per unit, and administrative costs are estimated to be $12,000 for the month The firm's customers usually pay 25% of their bell in the month of the sale and 73% in the next month (the other 2 are generally uncollectible). The firm pays its materials suppliers 70% in the month of purchase and 30% in the following month. Labourers, sales personnel administrators and all overhead purchases are paid in the month that services are received. Overhead costs indude $5,000 of depreciation on plant and equipment Sales last month were $250,000, and direct materials purchases were 56,000. A partially complete balance sheet as of the beginning of the months given here. Ats Liates and Equity Cash $5,000 Accounts payable Accounts 7 common stock 210.000 Direct materials inventory 566 Retained earnings Work-in-process entry Finished goodsenter 5,880 Total abilities and equity Plant & equipment) 245.000 Total assets Complete the beginning balance Assets Liabilities and 55.000 Cash Common stock 210,000 560 Retained emings Direct momenals inventory Work in processo TREN PRINTER VERSION NEXT Problem 10.50 Anchor Manufacturing has forecasted sales of 6,500 units of its product 565 each for the next month Beginning inventory consists of 800 grams of directives and 400 units of finished goods. The managers would like to end the month with 1.200 grams of raw materials, no units in work in process, and 700 units in finished goods. The firm accounts for inventory using the first first out (FFO) method. Three grams of materials are required per unit of product manufactured. Each unit also requires two hours of direct labour time. Materials cost 50.7 per gram, and labour is paid $14 per hour Forecasted overhead is $14,000 plus $ per unit manicured. Sales commissions are paid it the rate of si per unit, and administrative costs are estimated to be $12,000 for the month The firm's customers usually pay 25% of their bell in the month of the sale and 73% in the next month (the other 2 are generally uncollectible). The firm pays its materials suppliers 70% in the month of purchase and 30% in the following month. Labourers, sales personnel administrators and all overhead purchases are paid in the month that services are received. Overhead costs indude $5,000 of depreciation on plant and equipment Sales last month were $250,000, and direct materials purchases were 56,000. A partially complete balance sheet as of the beginning of the months given here. Ats Liates and Equity Cash $5,000 Accounts payable Accounts 7 common stock 210.000 Direct materials inventory 566 Retained earnings Work-in-process entry Finished goodsenter 5,880 Total abilities and equity Plant & equipment) 245.000 Total assets Complete the beginning balance Assets Liabilities and 55.000 Cash Common stock 210,000 560 Retained emings Direct momenals inventory Work in processo
