1. Fuson 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	$	118
Budgeted unit sales (all on credit):
October		9,600
November		10,100
December		13,700
January		11,300

Raw materials requirement per unit of output		3	pounds
Raw materials cost	$	4.00	per pound
Direct labor requirement per unit of output		2.7	direct labor-hours
Direct labor wage rate	$	23.00	per direct labor-hour
Predetermined overhead rate (all variable)	$	12.00	per direct labor-hour

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 10% of the following month's sales. The ending raw materials inventory should equal 10% of the following months raw materials production needs.

If 40,380 pounds of raw materials are required for production in December, then the budgeted raw material purchases for November is closest to:

Multiple Choice

• 32,280 pounds

• 38,556 pounds

• 31,380 pounds

• 35,418 pounds

2. Fuson 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	$	118
Budgeted unit sales (all on credit):
October		9,600
November		10,100
December		13,700
January		11,300

Raw materials requirement per unit of output		3	pounds
Raw materials cost	$	4.00	per pound
Direct labor requirement per unit of output		2.7	direct labor-hours
Direct labor wage rate	$	23.00	per direct labor-hour
Predetermined overhead rate (all variable)	$	12.00	per direct labor-hour

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 10% of the following month's sales. The ending raw materials inventory should equal 10% of the following months raw materials production needs.

If the budgeted cost of raw materials purchases in October is $116,772 and in November is $129,120, then in November the total budgeted cash disbursements for raw materials purchases is closest to:

Multiple Choice

• $81,740

• $90,384

• $38,736

• $120,476