Luchini 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 $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.b.Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. c.The ending finished goods inventory equals 10% of the following month's sales. d.The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $5.00 per pound. e.Regarding raw materials purchases, 40% are paid for in the month
of purchase and 60% in the following month. f.The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours. g.Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero. The budgeted accounts receivable balance at the end of May is closest to:
A. $672,660
B. $747,000
C. $1,121,100
D. $448,440
Answer: A
You might also like to view...
Guaranteed wages and salary increases based on the amount of time the employee has spent with the organization are called
a. Skill–based pay b. Job content-based pay c. Performance-based pay d. Seniority-based pay
Which of the following correctly describes the accounting for advertising costs?
A) Advertising costs are product costs and are expensed as incurred. B) Advertising costs are period costs and are expensed as incurred. C) Advertising costs are product costs and are expensed when the manufactured product is sold. D) Advertising costs are period costs and are expensed when the manufactured product is sold.
Assume that the reduced cost of a decision variable is -$20 for a maximization problem. This implies that:
A) the objective function value will decrease by $20 if we do not produce any units of this product B) the objective function value will not change if we produce an additional unit of this product C) the objective function value will increase by $20 if we produce an additional unit of this product D) the shadow price value will decrease by $20 if we produce an additional unit of this product E) the objective function value will decrease by $20 if we produce an additional unit of this product
One of the problems with using the Markov model to study population shifts is that we must assume that the reasons for moving from one state to another remain the same over time
Indicate whether the statement is true or false