#18

Luchini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:

The budgeted selling price per unit is $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.

Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.

The ending finished goods inventory equals 10% of the following month's sales.

The ending raw materials inventory equals 30% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $5.00 per pound.

Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.

The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours.

Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero.

The estimated finished goods inventory balance at the end of May is closest to:

$111,986

$102,676

$26,999

$129,675

#19

LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.5 hours of direct labor at the rate of $14.50 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The budgeted direct labor cost per unit of Product WZ would be:

$18.00

$50.75

$4.14

$14.50