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  3. johnson last month (december) sales were 20,000 un

Johnson last month (December) sales were 20,000 units @ $50. The company estimates an increase...

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Accounting

Johnson last month (December) sales were 20,000 units @ $50. The company estimates an increase of 1.5% in sales for January. An increase of 200 units for February (compared to January) and a reduction of 100 units for March (compared to February). The selling price is not expected to change. April sales projections are a 5% increase from December sales.

INVENTORY POLICY

FINISHED GOODS maintain an ending inventory equal to 30% of next month sales

December finished goods ending inventory was 7,000 units

DIRECT MATERIALS maintain an ending inventory equal to 40% of next month production

April production is estimated at 21,000

Materials cost is $10 per pound. Each unit requires .25 pounds of materials and actual inventory is 1,600 pounds

Labor Cost is $14 per hour and each unit requires 30 minutes of labor.

Fixed overhead is $62,517 monthly and variable overhead is 120% of direct labor cost.

CALCULATE MATERIALS TO BE PURCHASED IN MARCH

PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES

DON'T USE COMMA SEPARATORS

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