XYZ Company needs to prepare an estimated cost sheet for the second-half of 2015 based on the cost of the first-half of the same year in order to calculate the tenders. The following cost information are available for you on June 28, 2015: Profit??? 29,200
Profit 29,200
General Manager salary 27,000
Offices insurance expense 2,500
Direct labor 52,000
Manufacturing overhead 20,000
Selling expenses 8,800
Office salaries 19,500
Sales ?
Direct materials $32,000
For the second half of the year 2017, it is expected the following:
Raw materials prices will increase 10% than the last year.
Wages rate will increase 1.5%.
Manufacturing overhead will rise in proportion to combined of the prime cost components.
Administrative expenses will not be affected
Selling cost per unit will increase 2%.
Instructions:
Prepare an estimated cost sheet for the second half of the year 2017 on the basis of the first half of the same year per unit cost, assuming that all other circumstances will stay constant. Take in consideration the following:
The factory produced 1000 units during the first-half of the year 2017.
The factory policy is to keep 25% profit on selling price per unit.
The volume of production and sales will rise to 1200 units in the second-half of 2017.