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17 Weather Change, Co. reports the following information from its sales budget: Budgeted sales (units) July 18,000 August 19,200 September 20,400 October 21,800 24,100
17 Weather Change, Co. reports the following information from its sales budget: Budgeted sales (units) July 18,000 August 19,200 September 20,400 October 21,800 24,100 25,900 November December The budgeted sales price per unit is $72. The company desires each month's ending finished goods inventory to equal 15% of the following month's sales, and the company desires each month's ending raw materials inventory to equal 25% of the following month's budgeted production needs. Each unit of output requires 8 grams of materials and each gram of material costs $2.00. The firm budgets that each unit will take 2.5 hours to complete and the labor rate is $14.00 per DL hour. Variable factory overhead is estimated to be $3.00 per DL hour. There is no fixed factory OH. The budgeted variable selling, general, and administrative expenses are $2.00 per unit sold and the budgeted fixed selling, general, and administrative expenses are $89,450 total per month. Assume there is no interest expense and ignore any taxes. The budgeted net income for the month of September is: $131,350 $185,950 $133,780 $145,150 $161,250
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