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.
If the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to:
Raw Material Inventory at february end | |||
=Production Need For March*10% | |||
=55480*10% | |||
=5548 Pounds | |||
Bonkowski Corporation makes one product and has provided the following information to help prepare the master...
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...
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...
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 30% of...
Fuson 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 $ 118 Budgeted unit sales (all on credit): October 9,600 November 10,100 December 13,700 January 11,300 Raw materials requirement per unit of output 3 pounds Raw materials cost $ 4.00 per pound Direct labor requirement per unit of output 2.7 direct labor-hours Direct labor wage rate $ 23.00 per direct labor-hour...
223) Hennagir 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 $76 Budgeted unit sales (all on credit) January 9,500 February 9.900 March 10,600 April 12,600 Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate 3 pounds $5.00 per pound 2.2 direct labor-hours $18.00 per direct labor-hour Credit sales...
Sevenbergen 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 $92 Budgeted unit sales (all on credit) July 9,000 August 11,300 September 10,400 October 10,800 Raw materials requirement per unit of output 4 pounds Raw materials cost $1.00 per pound Direct labor requirement per unit of output 2.8 direct labor hours Direct labor wage rate $22.00 per direct labor hour Variable...
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 30% of...
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 30% of...
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 30% of...
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory...