Rokosz 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 $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 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 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 5 pounds of raw materials. The raw materials cost $2.00 per pound. e.The direct labor wage rate is $23.00 per hour. Each
unit of finished goods requires 2.5 direct labor-hours. The estimated direct labor cost for November is closest to:
A. $182,620
B. $456,550
C. $19,850
D. $320,000
Answer: B
You might also like to view...
The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________
A) maintenance, repair, and operating (MRO) B) product value analysis (PVA) C) vendor managed inventories (VMI) D) supplier performance management (SPM) E) supplier added value effort (SAVE)
The success of Six Sigma efforts depends on ______.
A. the support of a firm’s management B. the number of PhDs among the firm’s employees C. whether the firm is ISO certified D. whether the firm is in a manufacturing or in a service industry
When firms that are temporarily short of cash and unable to borrow from usual sources convert accounts receivable into cash by pledging the accounts receivable, they disclose this information
a. on the income statement, only. b. on the balance sheet, only. c. on both the income statement and the balance sheet. d. by a footnote to the financial statements. e. in managements' discussion and analysis.
A plan that states the number of units to be produced in a future period, based on the projected unit sales and inventory considerations, is the:
A. Cash budget. B. Production budget. C. Sales budget. D. Manufacturing budget. E. Merchandise purchases budget.