Wall Corporation manufactures and sells two products, PW 1 and PW 2. Projected data for 2020 are
Question:
Wall Corporation manufactures and sells two products, PW 1 and PW 2. Projected data for 2020 are as follows.
Sales forecast for 2020
ProductPriceUnits
PW1$4040,000
PW26030,000
Inventory Forecast for 2020
ProductExpected InventoryExpected Inventory
1 Jan, 202031 Dec, 2020
PW110,000 units12,500 units
PW24,000 units4,500 units
For raw materials requirements for the products are as follows.
MaterialsPW1
A2 pounds
B1 pound
MaterialsPW2
A2.5 pounds
B1.5 pounds
C1 Item
Anticipated data for 2020 related to raw materials are as follows:
MaterialPurchase PriceAnticipated InventoryAnticipated Inventory
1st Jan, 202031 Dec,2020
A$4.00 per pond16,000 lbs18,000 lbs
B$2.50 per pond14,500 lbs16,000 lbs
C$1.50 each3,000 items7,000 items
PW1 requires two direct labor hours per unit at $8 per hour. PW2 requires three direct labor hours per unit at $10 per hour. Manufacturing overhead is applied at the rate of $2 per direct labor hour.
Required:
A.Calculate projected sales in dollars in 2020 for each product.
B.Calculate the budgeted production in units for each product for 2020.
C.Calculate the raw materials purchases requirements for material A, B, and C for 2020 in quantity and in dollars.
D.Calculate the direct labor requirements for 2020 in hours and in dollars.
Calculate the dollar value of the finished goods inventory on 31st Dec, 2020 for PW1 and PW2.