Sevenbergen 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$92Budgeted unit sales (all on credit): July 9,000August 11,300September 10,400October 10,800 Raw materials requirement per unit of output 4poundsRaw materials cost$1.00per poundDirect labor requirement per unit of output 2.8direct labor-hoursDirect labor wage rate$22.00per direct labor-hourVariable selling and administrative expense$1.50per unit soldFixed selling and administrative expense$70,000per monthCredit sales are collected:40% in the month of the sale60% in the following monthRaw materials purchases are paid:30% in the month of purchase70% in the following monthThe ending
finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.The budgeted required production for August is closest to:
A. 11,120 units
B. 13,380 units
C. 15,640 units
D. 11,300 units
Answer: A
You might also like to view...
The Toby's chain of first-class department stores carries a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings
Toby's typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. Toby's most likely uses ________. A) self-service retailing B) experiential retailing C) high-low pricing D) everyday low pricing E) franchise retailing
The Federal Deposit Insurance Corporation was created under the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Indicate whether the statement is true or false
What is the role of the FTC and infomercials?
What will be an ideal response?
Which of the following are required to assess the current status of a project using the earned-value cost/schedule system?
A. BAC, EAC, and ETC B. VAC, EAC, and BAC C. TCPI, EV, and PV D. CV, SV, and BAC E. PV, EV, and AC