Bonkowski 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$97Budgeted unit sales (all on credit): January 10,000 February 12,000 March 13,300 April 15,200 Raw materials requirement per unit of output 4poundsRaw materials cost$1.00per poundDirect labor requirement per unit of output 2.5direct labor-hoursDirect labor wage rate$23.00per direct labor-hourPredetermined overhead rate (all variable)$9.00per direct labor-hourVariable selling and administrative expense$3.10per unit soldFixed selling and administrative expense$70,000per monthCredit sales are collected:30% in the month of the sale70% in the following monthRaw materials
purchases are paid:30% in the month of purchase70% in the following monthThe ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.The expected cash collections for February is closest to:
A. $349,200
B. $679,000
C. $1,028,200
D. $970,000
Answer: C
You might also like to view...
Which of the following accounts is not considered an asset?
A) Accounts Receivable B) Inventory C) Accounts Payable D) Trademark
When would the replacement cost of inventory be used as the market value under the lower-of-cost-or-market method?
a. Always b. When replacement cost is above net realizable value c. When replacement cost is below net realizable value and above net realizable value less normal profit margin d. When replacement cost is below net realizable value less normal profit margin
The Allowance for Bad Debts account is a contra-asset account
Indicate whether the statement is true or false
You are organizing your résumé for a highly competitive summer internship with an accounting firm. You believe your education is your strongest qualification because your work experience has been seasonal jobs at minimum wage. You also believe that your abilities, interests, and character are qualities that closely parallel the job description supplied by the business. What type of résumé
would be LEAST preferred for conveying your strengths? a. Chronological b. Functional c. Chrono-functional d. All are equally preferred.