Hawle Manufacturing Company is in the process of preparing its 2012 budget and is anticipating the following changes: 30% increase in the number of units sold.20% increase in the direct material unit cost.15% increase in the direct labor cost per unit.10% increase in the manufacturing overhead cost per unit.14% increase in the marketing price.7% increase in the administrative expenses.Hawle does not keep any units in inventory.The composition of the cost of finished products during 2012 for materials,direct labor,and factory overhead,respectively,was in the ratio of 3 to 2 to 1.The condensed income statement for 2012 is as follows: What is the estimated cost of goods sold for 2012 assuming the number of units sold does not change?

Question

Hawle Manufacturing Company is in the process of preparing its 2012 budget and is anticipating the following changes: 30% increase in the number of units sold.20% increase in the direct material unit cost.15% increase in the direct labor cost per unit.10% increase in the manufacturing overhead cost per unit.14% increase in the marketing price.7% increase in the administrative expenses.Hawle does not keep any units in inventory.The composition of the cost of finished products during 2012 for materials,direct labor,and factory overhead,respectively,was in the ratio of 3 to 2 to 1.The condensed income statement for 2012 is as follows:  What is the estimated cost of goods sold for 2012 assuming the number of units sold does not change?

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The Answer of Hawle Manufacturing Company is in the process of preparing its 2012 budget and is anticipating the following changes: 30% increase in the number of units sold.20% increase in the direct material unit cost.15% increase in the direct labor cost per unit.10% increase in the manufacturing overhead cost per unit.14% increase in the marketing price.7% increase in the administrative expenses.Hawle does not keep any units in inventory.The composition of the cost of finished products during 2012 for materials,direct labor,and factory overhead,respectively,was in the ratio of 3 to 2 to 1.The condensed income statement for 2012 is as follows:  What is the estimated cost of goods sold for 2012 assuming the number of units sold does not change?

Hawle Manufacturing Company Is in the Process of Preparing Its