Business, 14.11.2020 01:00 briannag0808
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
Answers: 3
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MC TOOLS makes hammers.
The requirements to make 1 hammer are:
Materials .5 pounds at a cost...
Materials .5 pounds at a cost...
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