What is the estimated cost of goods sold for 2020 assuming the number of units sold...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What is the estimated cost of goods sold for 2020 assuming the number of units sold does not change? Rerun Manufacturing Company is in the process of preparing its 2020 budget and is anticipating the following changes: 30% increase in the number of units sold. 24% increase in the direct material unit cost. 19% increase in the direct labor cost per unit. 13% increase in the manufacturing overhead cost per unit. 20% increase in the sales price. 6% increase in the administrative expenses. Rerun does not keep any units in inventory. The composition of the cost of finished products during 2019 for materials, direct labor, and factory overhead, respectively, was in the ratio of 3:2:1. The condensed income statement for 2019 is as follows: Sales (43,000 units) Less sales returns Net sales Cost of Goods Sold Gross Profit Selling Expenses Admin. Expenses Net Income $559,000 55,900 503, 100 345,000 $ 73,000 43,000 $158,100 116,000 $ 42,100 What is the estimated cost of goods sold for 2020 assuming the number of units sold does not change? Rerun Manufacturing Company is in the process of preparing its 2020 budget and is anticipating the following changes: 30% increase in the number of units sold. 24% increase in the direct material unit cost. 19% increase in the direct labor cost per unit. 13% increase in the manufacturing overhead cost per unit. 20% increase in the sales price. 6% increase in the administrative expenses. Rerun does not keep any units in inventory. The composition of the cost of finished products during 2019 for materials, direct labor, and factory overhead, respectively, was in the ratio of 3:2:1. The condensed income statement for 2019 is as follows: Sales (43,000 units) Less sales returns Net sales Cost of Goods Sold Gross Profit Selling Expenses Admin. Expenses Net Income $559,000 55,900 503, 100 345,000 $ 73,000 43,000 $158,100 116,000 $ 42,100
Expert Answer:
Answer rating: 100% (QA)
Estimated cost of goods sold for 2020 Note It is assumed manufacturing overhead is variable co... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these accounting questions
-
Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $65. Budgeted unit sales for June, July,...
-
Mark Dalid founded Molid Company three years ago. The company produces PDAs that are compatible with the most operating systems including Palm, MS Windows, and Linux with USB connection and WiFi...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Olmsted Co. has small computer chips assembled in Poland and transports the final assembled products to the parent, where they are sold by the parent in the U.S. The assembled products are invoiced...
-
Determining Optimal Cash Balances the all day Company is currently holding $670,000 in cash. It projects that over the next year its cash outflows will exceed cash inflows by $125,000 per month. How...
-
Explain how temporary accounts are closed in a corporation. In what ways are closing entries similar to those of a proprietorship and in what ways are they different?
-
A Francis turbine working under a head of 10 \(\mathrm{m}\). The overall efficiency is \(75 \%\) and power required to produce \(180 \mathrm{~kW}\). The peripheral and radial velocities at inlet are...
-
1. Based upon your knowledge of health and safety matters and your actual observations of operations that are similar to ours make a list of the potential hazardous conditions employees and others...
-
In March 2022, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Gingers gift tax liability for 2022 if she and Greg elect gift splitting and Greg...
-
This problem continues the Draper Consulting, Inc., situation from Problem 2-62 of Chapter 2. Start from the trial balance and the posted T-accounts that Draper Consulting, Inc., prepared at December...
-
1. Draw a cash flow diagram showing payments of S6000 now, $2500 two years from now and $4500 six years from now. Interest rate is 9% per year. For the given cash flows find the: a) Total present...
-
P11. Two small balls, each of mass 0.92 g, are attached to silk threads 50 cm long, which are in turn tied to the same point on the ceiling. When the balls are given the same charge Q, the threads...
-
Identify some ethical situations employees might encounter in the workplace. Discuss the situation and identify steps employees can take to make the best "ethical" decision possible. must be written...
-
A company s normal capacity is 1 0 , 0 0 0 units and at this level variable cost per unit is Rs . 7 5 and fixed cost per unit is Rs . 3 0 . What are the total fixed costs for the company?
-
1. Under the NOC code 14404 what are 3 of the educational/employment requirements for the title of Ambulance Dispatcher? (3 marks) 2. Under the NOC code 64400, list 2 of the typical duties for the...
-
The total (after-tax) cost of a laptop computer is $1278.24. The local sales tax rate is 7.6%. What is the retail (pre-tax) price?
-
2.50 moles of an ideal gas with molar heat capacity at constant volume of 12.47 J/K-mol is expanded adiabatically against a constant external pressure of 1.00 atm. the initial temperature and...
-
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
-
Harpers, Ltd., is a U.K. manufacturer of casual shoes for men and women. It has sustained strong growth in the U.K. market in recent years due to its close attention to fashion trends. Harpers shoes...
-
Identify opportunities afforded by customer profitability analysis.
-
Esplanade Companys credit sales have the following historical pattern: 70 percent collected in the month of sale 15 percent collected in the first month after month of sale 10 percent collected in...
-
In the cooling tower of Example 8.7, to what temperature would the water be cooled if, after the tower was built and operated at the design water and air rates, the air entered at a dry-bulb...
-
Modify the Mathcad program developed in Problem 3.16 to estimate the minimum gas flow rate in strippers so that it can be used to estimate the minimum air flow required for water cooling. Test your...
-
Calculate the absolute humidity, relative saturation, and dew-point temperature of a mixture of benzene-nitrogen at a pressure of \(1.5 \mathrm{bar}\) and temperature of \(320 \mathrm{~K}\) if the...
Study smarter with the SolutionInn App