Question

The Denver Corporation has forecast the following sales for the first seven months of the year BB January $28,600 February 22,000 March 24,000 April 30, cee May 20,000 June 26.000 July 28,600 Monthly material purchases are set equal to 40 percent of forecast sales for the next month, or the total material costs, 50 percentare paid in the month of purchase and 50 percent in the following month Labor costs will run $5,000 per month and fixed overhead is $7000 per month Interest payments on the debt will be $4,000 for both March and June.

Answer 1

The Denver Corporation has forecasted its sales for the first seven months of the year. Monthly material purchases are set at 40% of the forecasted sales for the following month. Material costs are split with 50% paid in the month of purchase and the remaining 50% in the following month. Labor costs are $5,000 per month and fixed overhead is $7,000 per month. Interest payments on the debt will be $4,000 for both March and June.

Step-by-step explanation:

The Denver Corporation has forecasted its sales for the first seven months of the year. Monthly material purchases are set at 40% of the forecasted sales for the following month. Material costs are split with 50% paid in the month of purchase and the remaining 50% in the following month. Labor costs are $5,000 per month and fixed overhead is $7,000 per month. Interest payments on the debt will be $4,000 for both March and June.

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Answer 2

The Denver Corporation has forecasted sales for the first seven months of the year. Material purchases and costs, labor costs, fixed overhead, and interest payments on the debt are also provided.

Step-by-step explanation:

The Denver Corporation has forecasted sales for the first seven months of the year: January $28,600, February $22,000, March $24,000, April $30,000, May $20,000, June $26,000, and July $28,600.

The monthly material purchases are set equal to 40% of the forecasted sales for the next month. Material costs are 50% paid in the month of purchase and 50% in the following month. Labor costs are $5,000 per month, and fixed overhead is $7,000 per month. The interest payments on the debt are $4,000 for both March and June.