MC TOOLS makes hammers. The requirements to make 1 hammer are: Materials .5 pounds at a...

 

 

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MC TOOLS makes hammers. The requirements to make 1 hammer are: Materials .5 pounds at a cost of $9 per pound Labor 15 minutes per hammer at a cost of $10 per hours Variable Overhead is assigned at 25% of labor and fixed overhead is $140,000 monthly MC TOOLS sales in March were 500,000 units Projected Sales are: An increase of 1% in April (from march sales) May sales projection are 510,000 units MC TOOLS finished goods inventory policy is to keep in inventory 40% of next month sales. Actual inventory is 190,000 units. MC TOOLS raw materials inventory policy is to keep in inventory 50% of next month production. Actual inventory is 260,000 pounds. May production is expected to be 510,000 units REQUIRED: CALCULATE DIRECT MATERIALS COST IN APRIL MC TOOLS makes hammers. The requirements to make 1 hammer are: Materials .5 pounds at a cost of $9 per pound Labor 15 minutes per hammer at a cost of $10 per hours Variable Overhead is assigned at 25% of labor and fixed overhead is $140,000 monthly MC TOOLS sales in March were 500,000 units Projected Sales are: An increase of 1% in April (from march sales) May sales projection are 510,000 units MC TOOLS finished goods inventory policy is to keep in inventory 40% of next month sales. Actual inventory is 190,000 units. MC TOOLS raw materials inventory policy is to keep in inventory 50% of next month production. Actual inventory is 260,000 pounds. May production is expected to be 510,000 units REQUIRED: CALCULATE DIRECT MATERIALS COST IN APRIL

Answer rating: 100% (QA)

A No of Units to be Produced in April N Sales in April Actual Finished Goods Inventory Finished good... View the full answer