Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing...
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Accounting
Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2014.
January
February
March
April
May
Estimated unit sales
12,000
14,000
10,000
11,000
11,000
Sales price per unit
$50.00
$47.50
$47.50
$47.50
$47.50
Direct labor hours per unit
2.00
2.00
1.50
1.50
1.50
Wage per direct labor hour
$8
$8
$8
$9
$9
Donnegal has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Donnegal expects to begin the year with 17,600 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following months sales, plus 40% of the second following months sales.
need help on part B
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need help on part B