Question: CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 7 per unit Fixed

CWL standard costs are:

Variable Costs
Direct Material	$ 18	per unit
Direct Labor	$ 15	per unit
Variable Overhead	$ 7	per unit
Fixed Costs
Selling	$ 120,000
Administrative	$ 130,000

The product selling price is $72

Calculate the budgeted pretax income if 10,000 units are sold

IRWIN TECH sales in June were 400,000 units. Sales are expected to increase by 2% each month during the next 2 months (July and August) and an additional 8,000 units in September from August amount. Selling price is $16 per unit. Expected sales in October are 420,000 units. The firm inventory policy is to maintain an ending inventory equal to 25% of next month sales. Actual inventory is 103,000 units.

80% of sales are cash sales

20% of sales are collected in 1 month

Calculate expected Accounts Receivables for the projected Balance Sheet.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 7 per unit Fixed Costs Selling $ 120,000 Administrative $ 130,000 The product...

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable $ 6 per unit Overhead Fixed Costs Selling 120,000 $ Administrative 120,000 The product selling...

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 6 per unit Fixed Costs Selling $ 120,000 Administrative $ 120,000 The product...

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 7 per unit Fixed Costs Selling $ 120,000 Administrative $ 130,000 The product...

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 6 per unit Fixed Costs Selling $ 120,000 Administrative $ 120,000 The product...

CWL standard costs are: Variable Costs Direct Material $ 18 per unit Direct Labor $ 15 per unit Variable Overhead $ 7 per unit Fixed Costs Selling $ 120,000 Administrative $ 130,000 The product...

You are a conservative investor who is considering investing in "BMRP Inc.", a small widget company. You like the intrinsic valuation approach and want to calculate BMRP Inc.'s weighted average cost...

The same facts apply as in Exercise 14 except that Budvar Company purchases parts from a foreign supplier on December 1, Year 1, with payment of 20,000 crowns to be made on March 1, Year 2. On...

14. A firm purchases machinery, which has an estimated useful life of 10 years and no salvage value, for $60,000 at the beginning of the accounting period. What is the adjusting entry for...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...