Question
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:
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.
The budgeted accounts receivable balance at the end of November is closest to:
Multiple Choice
a. $795,000
b. $1,191,800
c. $834,260
d. $357,540
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