Assume you are starting a new business involving the manufacture and sale of a new product....

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Accounting

Assume you are starting a new business involving the manufactureand sale of a new product. Raw materials costs are $45 per product.Direct labor costs are expected to be $25 per product,Manufacturing Overhead is expected to cost $18 per product. Youexpect to sell each product for $172. You plan to produce 120products next month and expect to sell 85 products. During thesecond month, you plan to produce 120 products but expect sales inthe month to be 110 products. During the third month you expect toproduce 120 products but sell 135 products Prepare a productionschedule (units & dollars), a raw materials and finished goodsinventory schedule (units & dollars), and the top part of anincome statement (sales, cost of goods sold and gross profit) forthe three months.

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Production schedule Production Schedule Month 1 Cost of production per unit 88 Month 2 Cost of production 88 Month 3 Cost of production per unit 88 Planned Production 120 units 10560 120 units 10560 120 units 10560 Beginning inventory 0 0 35 units 3080 45 units 3960 total units available for sale 120 units 10560 155 units 13640 165 units 14520 Forecasted Sales 85 units 7480 110 See Answer

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