Hesterman 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$118Budgeted unit sales (all on credit): April 7,800 May 9,400 June 14,000 July 12,100 Raw materials requirement per unit of output 3poundsRaw materials cost$3.00per poundDirect labor requirement per unit of output 2.8direct labor-hoursDirect labor wage rate$25.00per direct labor-hourCredit sales are collected:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.If 39,720 pounds of raw
materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:
A. $124,992
B. $145,224
C. $101,160
D. $104,760
Answer: D
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