During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
on account, factory labor $7, 010 of which $5, 673 relates to factory wages payable and $1, 337 relates to payroll taxes payable, and utilities payable $2, 130. During January, time tickets show that the factory labor of $7, 010 was used as follows: Job 1 $2, 314, Job 2 $1, 733, Job 3 $1, 529, and general factory use $1, 434. Prepare a summary journal entry to record factory labor used. In January, Knox Company requisitions raw materials for production as follows: Job 1 $926, Job 2 $1, 730, Job 3 $777, and general factory use $701.
1 answer:
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Answer:
The correct option is B. 9200.
Explanation:
This can simply be answered as follows:
.................. (1)
Where:
= Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?
= Week 5 demand = 11,000
= Week 4 demand = 9,000
= Week 3 demand = 7,000
The (0.4, 0.3, 0.3) implies that:
= Weight of Week 5 demand = 0.4
= Weight of Week 4 demand = 0.3
= Weight of Week 3 demand = 0.3
Substituting all the relevant values into equation (1), we have:
= (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200
Therefore, the correct option is B. 9200.