Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $44. Wesley expects the following unit sales Wesley's ending finished goods inventory policy is 30 percent of the next month's sales Suppose each handsaw takes approximately 0.75 hours to manufacture, and Wesley pays an average labor wage of $18 per hour Each handsaw requires a plastic housing that Wesley purchases from a supplier at a cost of $700 each. The company has an ending direct materials inventory policy of 25 percent of the following month's production requirements. Materials other than the housing unit total $450 per handsaw Manufacturing overhead for this product includes $72.000 annual fixed overhead based on production of 27000 units) and $120 per unit variable manufacturing overhead Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18.000 per month Required: Compute the following for the first quarter (Round your intermediate calculations to nearest whole dollar) February March 1st Quarter total January 2.000 1 Budgeted Sales Revenue Budgeted Production in Units Budgeted Cost of Direct Material Purchase Budgeted Direct Labor Cost Wesley's ending finished goods inventory policy is 30 percent of the next month's sales. Suppose each handisaw takes approximately 0.75 hours to manufacture, and Wesley pays an average labor wage of $18 per hour Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $700 each. The company has an end direct materials inventory policy of 25 percent of the following month's production requirements. Materials other than the housing total $4.50 per handisaw. Manufacturing overhead for this product includes $72,000 annual fixed overhead (based on production of 27,000 units) and $1.20 unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are f at $18,000 per month Required: 1. Compute the budgeted cost of goods sold for the first quarter 2. Compute the budgeted selling and administrative expenses for the first quarter. 3. Complete the budgeted income statement for the handisaw product for the first quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted cost of goods sold for the first quarter. (Do not round your intermediate calculations. Round final answers to the nearest dollar amount.) January February March 1st Quarter Total Budgeted Cost of Goods Sold Required Required 2 > Wesley's ending finished goods inventory policy is 30 percent of the next month's sales. Suppose each handisaw takes approximately 0.75 hours to manufacture, and Wesley pays an average labor wage of $18 per hour Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $700 each. The company has an ending direct materials inventory policy of 25 percent of the following month's production requirements. Materials other than the housing unit total $4.50 per handisaw. Manufacturing overhead for this product includes $72,000 annual fixed overhead (based on production of 27.000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month Required: 1. Compute the budgeted cost of goods sold for the first quarter. 2. Compute the budgeted selling and administrative expenses for the first quarter. 3. Complete the budgeted income statement for the handisaw product for the first quarter Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted selling and administrative expenses for the first quarter. January 24.160 February 24,776 March 26,316 1st Quarter Total S 75.252 Budgeted Selling and Administrative Expenses 5 $ unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month Required: 1. Compute the budgeted cost of goods sold for the first quarter 2 Compute the budgeted selling and administrative expenses for the first quarter 3. Complete the budgeted income statement for the handsaw product for the first quarter. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Complete the budgeted income statement for the hand saw product for the first quarter. (Do not round cost per unit. Round other intermediate calculations and final answers to the nearest dollar amount.) WESLEY POWER TOOLS Budgeted Income Statement For the Quarter Ending March January February S 88 000 $ March 1st Quarter Total 5 303.600 118.500 Budgeted Sales Revenue Budgeted Cost of Goods Sold Budgeted Gross Profit 104.420 24.160 24.776 26.31 Budgeted Selling and Administrative Expenses Budgeted Net Operating Income
