Hesterman 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$118Budgeted unit sales (all on credit):  April 7,800May 9,400June 14,000July 12,100? Raw materials requirement per unit of output 3poundsRaw materials cost$3.00per poundDirect labor requirement per unit of output 2.8direct labor-hoursDirect labor wage rate$25.00per direct labor-hour?Credit sales are collected:40% in the month of the sale60% in the following month?The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.?If 39,720 pounds of raw

materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:

A. $124,992
B. $104,760
C. $101,160
D. $145,224


Answer: B

Business

You might also like to view...

Which of the following is an example of an operating activity?

A) Obtaining capital from owners B) Selling goods and services to customers C) Purchasing equipment D) Selling land

Business

Why is it important to understand employees’ job satisfaction?

What will be an ideal response?

Business

All of the following are examples of standing plans, EXCEPT ______.

a. procedures b. budgets c. rules d. policies

Business

The principal can be held liable for any negligence of her agent committed during the time that

the agent has agreed to act as agent. Indicate whether the statement is true or false

Business