Ever Company budget sales at S2,000,000 and expects a net income before tax of 10%...
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Accounting
Ever Company budget sales at S2,000,000 and expects a net income before tax of 10% of sales.
Expenses are estimated as follows:
Selling 15% of sales
Administrative 9% of sales
Finance 1% of sales
Labor is expected to be 40% of the total manufacturing costs.
Factory overhead is to be applied at 75% of direct labor costs.
Inventories are to be as follows:
January 1 December 31
Materials S250,000 S300,000
Work-in-Process 200,000 320,000
Finished goods 350,000 400,000
Required:
a. how much will be cost of good sold?
b. how much will the total manufacturing cost?
c. how much will be the factory overhead?
d. how much will be the material purchases?
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