Reliance Company budgets sales at k,000,000 and expects a net income before tax of 10% of sales. Expenses are estimated as follows: Selling - 15% of sales Administrative – 9% of sales Finance - 1% of...

Extracted text: Reliance Company budgets sales at k,000,000 and expects a net income before tax of 10% of sales. Expenses are estimated as follows: Selling - 15% of sales Administrative – 9% of sales Finance - 1% of sales Labor is expected to be 40% of the total manufacturing cost. Factory overhead is to be applied at 75% of direct labor cost. Inventories are to be as follows; Jan 1 Dec 31 Materials 250,000 300,000 Work in Process 200,000 320,000 Finished Goods 350,000 400,000 Cost of good sold and manufacturing cost will be: