Belmain co. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. the total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. with this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. a summary report of these estimates is as follows: : fixed costs variable cost (per unit sold)production costs: direct materials $50.00direct labor 30.00factory overhead $350,000 6.00selling expenses: sales salaries and commission 340,000 4.00advertising 116,000travel 4,000miscellaneous selling expense 2,300 1.00administrative expenses: office and officers’ salaries 325,000supplies 6,000 4.00miscellaneous administrative expense 8,700 1.00total $1,152,000 $96.00it is expected that 12,000 units will be sold at a price of $240 a unit. maximum sales within the relevant range are 18,000 units. prepare an estimated income statement for 2016.
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Belmain co. expects to maintain the same inventories at the end of 2016 as at the beginning of the y...
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