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 equals 30% of the following month's sales. d.The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 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 $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g.Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h.The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. The estimated finished goods inventory balance at the end of February is closest to:
A. $362,160
B. $287,280
C. $74,880
D. $316,080
Answer: A
You might also like to view...
During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years
A) decline B) growth C) maturity D) ideation E) analysis
How do companies generally manage and motivate their channel members? What technological tools are available to help with this task?
What will be an ideal response?
In a product sales force structure, no single salesperson can become an expert in all of the product categories, so product specialization is required
Indicate whether the statement is true or false
______ moral development is an approach to understanding ethical decision-making that focuses on the mental determination of right and wrong based on values and social judgments.
A. Situational B. Deontological C. Hypernormal D. Cognitive