Reference no: EM131803709

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.