Question: ONLY #6 and #7 Please Stuck on them ! 1. Sales forecast: January: 1,100 units; February: 1,500 units; March: 2,300 units; April: 2,500 units. The

ONLY #6 and #7 Please Stuck on them !

ONLY #6 and #7 Please Stuck on them ! 1. Sales forecast:January: 1,100 units; February: 1,500 units; March: 2,300 units; April: 2,500 units.

1. Sales forecast: January: 1,100 units; February: 1,500 units; March: 2,300 units; April: 2,500 units. The unit sales price is $58. All sales are on credit and collections are 30% in the month of sale and 70% the following month. Accounts receivable as of December 31,2016 is $15,900 and this amount is expected to be collected in January 2017 2. End of month inventory must equal 70% of next month's sales. The inventory at the end of December 2016 was 1,200 units. 3The following are the expected costs for direct materials, direct labor and manufacturing overhead: DM Overhead January $8/unit February $8/unit March A. Direct materials are paid 20% in the month incurred and 80% in the following month. $15/unit $15/unit $15/unit 7,00+1.00 per unit produced 7,500$1.00 per unit produced 7,500$1.00 per unit produced S8/unit Account payable for materials as of December 31, 2016 is $5,000; this amount will be paid in January 2017 B. Direct labor is paid in the month incurred. C. Overhead costs are paid in the month incurred. Fixed overhead includes depreciation of $2,500 per month. 4. Selling costs are sales commissions: S.50 per unit sold; shipping costs: S.20 per unit sold. Administrative costs per month are: salaries: S1,500; rent: S500; depreciation: $800. All costs are paid in month incurred. 5. The company plans to buy equipment costing S30,000 to be paid in cash in January

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 Accounting Questions!