Question
13. Never Ending Battle for Truth Justice and the American Way LLC makes one product and it provided the following information to help prepare the
13.
Never Ending Battle for Truth Justice and the American Way LLC makes one product and it provided the following information to help prepare the master budget for the next four months of operations:
a.The budgeted selling price per unit is $100. Budgeted unit sales for April, May, June, and July are 7,000, 11,000, 13,000, and 14,000 units, respectively. All sales are on credit. b.Regarding credit sales, 40% are collected in the month of the sale and 50% in the following month and the remaining 9 % in second month following sales, 1 % likely uncollectible .
c.The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct
labor-hours. d.Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead
1s ZerO. The budgeted accounts receivable balance at the end of June is closest to:
A) $747,000 B) $866,000 C) $767,000 D) $780,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started