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10 Durbin Corporation makes one product and it provided the following information to help prepere the master budget for the next four months of
10 Durbin Corporation makes one product and it provided the following information to help prepere the master budget for the next four months of operation The budgeted selling price per unit is $10. Budgeted unt sales for January February March and April are 7500, 10.600, 12.000, and 11700 units, respectively All sales are on credit Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month The ending finished goods inventory equals 30% of the following month's sales The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound The direct labor wage rate is $23.00 per hour Each unt of finished goods requires 26 direct labor hours Manufacturing overbead is entirely variable and is $8.00 per direct labor hour The budgeted sales for February is closest to Mulele Choice O O $1287000 $1306.000 $825,000 $1220,000
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