Reference no: EM132470787

Buckman Corporation, which began operations on January 1 of the current year, reported the following information:

Buckman Corporation Estimated Manufacturing Overhead         $ 600,000

Actual Manufactuing Overhead                                            $ 639,000

Estimated Direct Labour Cost                                               $ 480,000

Actual Direct Labour Cost                                                    $ 500,000

Total debit in Work in Progress account as at closing               $ 1,880,000

Total crebit (negative) in Finished Goods account as at closing   $ 920,000

Estimated Direct Labour hours 30,000Actual Direct Labour hours      25,000

Point 1: Buckman uses a normal cost system and applies manufacturing overhead to jobs on the basis of direct labor cost. A 60% markup is added to the cost of completed production when finished goods are sold. On December 31, job no. 18 was the only job that remained in production. That job had direct-material and direct-labor charges of $16,500 and $36,000 (2,813 direct labour hours), respectively.

Question 1: Calculate the targeted sales.