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Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $50. Wesley expects the following unit sales:

January 4,200

February 4,400

March 4,900

April 4,700

May 4,100

Wesleys ending finished goods inventory policy is 30 percent of the next months sales. Suppose each handisaw takes approximately 0.60 hours to manufacture, and Wesley pays an average labor wage of $26 per hour.

Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $8.00 each. The company has an ending direct materials inventory policy of 30 percent of the following months production requirements. Materials other than the housing unit total $4.50 per handisaw.

Manufacturing overhead for this product includes $72,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesleys selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month.

Required: Compute the following for the first quarter: (Round your intermediate calculations to nearest whole dollar.) X Answer is not complete. January February March 1. $ $ $ 210,000 4,260 220,000 4,550 245,000 4,840 2. Budgeted Sales Revenue Budgeted Production in Units Budgeted Cost of Direct Materials Purchases for the Plastic Housings Budgeted Direct Labor Cost 1st Quarter total $ 675,000 13,650 $ 0 $ 212,940 3. 4. $ 66,456 70,980 75,504

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