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Mathematics, 27.01.2021 02:30 juliana211
Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Budgeted selling price per unit $ 97
Budgeted unit sales (all on credit):
January 10,000
February 12,000
March 13,300
April 15,200
Raw materials requirement per unit of output 4 pounds
Raw materials cost $ 1.00 per pound
Direct labor requirement per unit of output 2.5 direct labor-hours
Direct labor wage rate $ 23.00 per direct labor-hour
Predetermined overhead rate (all variable) $ 9.00 per direct labor-hour
Variable selling and administrative expense $ 3.10 per unit sold
Fixed selling and administrative expense $ 70,000 per month
Credit sales are collected:
30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
The budgeted sales for February is closest to:
$1,290,100
$1,164,000
$970,000
$1,474,400
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