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

Business

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