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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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