Michard 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 $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. b.Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month. c.The ending finished goods inventory equals 20% 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 4 pounds of raw materials. The raw materials cost $2.00 per pound. e.Regarding raw materials purchases, 30% are paid for in the month
of purchase and 70% in the following month. f.The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours. g.The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000. The budgeted required production for May is closest to:
A. 13,260 units
B. 11,160 units
C. 15,360 units
D. 10,500 units
Answer: B
You might also like to view...
Reference groups may be defined as
A) public opinion research firms employed by large public relations agencies. B) media outlets whose presence consumers can find both online and off-line. C) advertising sales organizations that recommend certain media vehicles to clients. D) external sources people look to for purchase decision-making cues. E) news aggregation sites with high click-through rates.
A(n) _____ is a verb form that ends in "ing" and is used as a noun
Fill in the blank(s) with correct word
Consider the data on Inventory for Blenders Over a 20-Day Period. Any time that ending inventory falls to 15 or below, an order is placed for 30 units of the product. The lead time for delivery varies and is shown in the column under Lead Time. If the holding costs per unit were $8, what are the total inventory costs for the 20-day period?
a. $2,184
b. $2,240
c. $2,296
d. $2,136
Use the F table to find the following probabilities
a. P(F6,14 > 2.85) b. P(F20,60 > 2.20) c. P(F12,25 > 2.51) d. P(F15,30 > 2.01)