Home / Questions / Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular ite
Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $30. Wesley expects the following unit sales January February March 2.200 2.400 700 May 100 Wesley's ending finished goods inventory policy is 20 percent of the next month's sales. labor wage of $20 per hour. Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $5.00 each. The company has an ending raw materials inventory policy of 25 percent of the following month's production requirements. Materials other than the housing unit total $4.50 per handisaw. Manufacturing overhead for this product includes $72,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month. Required: 1. Compute the following for the first quarter: (Do not round your intermediate calculations.) March 1st Quarter total January February Budgeted Sales Revenue 1 0 2 Budgeted Production in Units Budgeted Cost of Raw Material Purchases for the Plastic Housings 3 Budgeted Direct Labor Cost 4
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