Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22,
Question:
Pallen Company estimated sales of 11,000 units at $40 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 10% commission on each unit sold. Administrative expense is budgeted at $50,000.
Calculate Pallen's budgeted operating income with work shown.
Kromelow Company manufactures lamp shades. Budgeted sales of lamp shades are 3,200 units in January, 4,800 units in February, and 4,000 units in March. Management believes that an ending inventory equal to 20% of the next month's sales strikes the appropriate balance between excessive and insufficient inventories. Each lamp shade requires 1.5 direct labor hours. The average direct labor rate is $10.00 per hour.
Calculate the budgeted production (in units) for February.
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso