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Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as...

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Accounting

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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: Estimated Variable Cost (per unit sold) Estimated Fixed Cost 2 Production costs: 546.00 40.00 20.00 3 Direct materias 4 Direct labor Factory overhead $200,000.00 Selling expenses: 110,000.00 40,000.00 12,000.00 7,600.00 sales salaries and commissions 8.00 8 Advertising Travel 1Miscellaneous selling expense 11Administrative expenses 12 Office and officers salaries 13 Supplies 14 Miscellaneous administrative expense 15 Total 1.00 132,000.00 10,000.00 13,400.00 $525,000.00 4.00 1.00 $120.00 It is expected that 21,875 units vwill be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units

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