McComb Co. expects to sell 15,000 units at $235 each. Each unit is expected to require...

 

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McComb Co. expects to sell 15,000 units at $235 each. Each unit is expected to require 3lbs. of material @$20/lb. and 4 direct labor hours @ $15/DLH. The overhead rate is estimated to be $10/DLH. The beginning inventories are: DM 2,000 lbs. and Finished Goods 1,000 units. The budgeted ending inventories are: DM 2,500 lbs. and Finished Goods 1,500 units. 1. What is McComb Co's budgeted sales (in $)? 2. What is McComb Co's budgeted production (in units)? 3. 4. Assuming a production of 10,500 units, what is the budgeted materials purchase (in lbs.& $)? Based on your answer to (2), what is the budgeted cost per unit? 5. Based on your answer to (2), what is the budgeted cost of goods sold? 6. Based on your answer to (2), what is the budgeted cost for DL & FOH respectively? McComb Co. expects to sell 15,000 units at $235 each. Each unit is expected to require 3lbs. of material @$20/lb. and 4 direct labor hours @ $15/DLH. The overhead rate is estimated to be $10/DLH. The beginning inventories are: DM 2,000 lbs. and Finished Goods 1,000 units. The budgeted ending inventories are: DM 2,500 lbs. and Finished Goods 1,500 units. 1. What is McComb Co's budgeted sales (in $)? 2. What is McComb Co's budgeted production (in units)? 3. 4. Assuming a production of 10,500 units, what is the budgeted materials purchase (in lbs.& $)? Based on your answer to (2), what is the budgeted cost per unit? 5. Based on your answer to (2), what is the budgeted cost of goods sold? 6. Based on your answer to (2), what is the budgeted cost for DL & FOH respectively?

Answer rating: 100% (QA)

Answer 1 To calculate the budgeted sales we multiply the expected number of units to be sold by the ... View the full answer