Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The
Posted: Wed Mar 09, 2022 8:18 am
Wolsey Industries Inc. expects to maintain the same inventories
at the end of 20Y8 as at the beginning of the year. The total of
all production costs for the year is therefore assumed to be equal
to the cost of goods sold. With this in mind, the various
department heads were asked to submit estimates of the costs for
their departments during the year. A summary report of these
estimates is as follows:
1
Estimated Fixed Cost
Estimated Variable Cost (per unit sold)
2
Production costs:
3
Direct materials
—
$58.00
4
Direct labor
—
38.00
5
Factory overhead
$194,000.00
20.00
6
Selling expenses:
7
Sales salaries and commissions
102,000.00
8.00
8
Advertising
42,000.00
—
9
Travel
8,000.00
—
10
Miscellaneous selling expense
7,800.00
1.00
11
Administrative expenses:
12
Office and officers’ salaries
135,200.00
—
13
Supplies
10,000.00
2.00
14
Miscellaneous administrative expense
14,600.00
1.00
15
Total
$513,600.00
$128.00
It is expected that 21,400 units will be sold at a price of $160
a unit. Maximum sales within the relevant range are
26,000 units.
at the end of 20Y8 as at the beginning of the year. The total of
all production costs for the year is therefore assumed to be equal
to the cost of goods sold. With this in mind, the various
department heads were asked to submit estimates of the costs for
their departments during the year. A summary report of these
estimates is as follows:
1
Estimated Fixed Cost
Estimated Variable Cost (per unit sold)
2
Production costs:
3
Direct materials
—
$58.00
4
Direct labor
—
38.00
5
Factory overhead
$194,000.00
20.00
6
Selling expenses:
7
Sales salaries and commissions
102,000.00
8.00
8
Advertising
42,000.00
—
9
Travel
8,000.00
—
10
Miscellaneous selling expense
7,800.00
1.00
11
Administrative expenses:
12
Office and officers’ salaries
135,200.00
—
13
Supplies
10,000.00
2.00
14
Miscellaneous administrative expense
14,600.00
1.00
15
Total
$513,600.00
$128.00
It is expected that 21,400 units will be sold at a price of $160
a unit. Maximum sales within the relevant range are
26,000 units.