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 10,000February 12,000March 13,300April 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 month?Credit sales are collected: 30% in the month of the sale 70% in the following month?Raw materials
purchases are paid: 30% in the month of purchase 70% in the following month?The 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 estimated finished goods inventory balance at the end of February is closest to:
A. $89,775
B. $335,160
C. $281,295
D. $245,385
Answer: B
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According to the 2017 Navex Global Ethics & Compliance Hotline & Incident Management Benchmark Report, which of the following statements is true regarding reports to ethics hotlines?
A. Reports have stayed the same. B. Reports have increased significantly. C. Reports have decreased significantly. D. Reports have become more focused on significant issues.
Cost of goods sold is budgeted at 40% of sales, and the inventory at the end of February was $34,000. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?
Seaworthy Company, a merchandising company, has prepared the following sales budget:
A) $24,800
B) $9640
C) $96,400
D) $9920
To avoid litigation, some credit-granting companies
a. choose not to respond to customer requests for credit. b. choose to omit from their letters the explanation for credit denial. c. make the name and address of the credit bureau inaccessible to the consumer. d. refuse credit by phone rather than in writing.
Which of the following characteristics does not usually apply to process operations?
A. Each unit of product is separately identifiable. B. Costs are computed using equivalent units. C. Partially completed products are transferred between processes. D. A separate Work in Process Inventory is used for each process. E. Each process is a separate department.