7 . Petrini Corporation makes one product and it provided the following information to help prepare the
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Question:
Petrini Corporation 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 $ Budgeted unit sales for January, February,
March, and April are and units, respectively. All sales are
on credit.
b Regarding credit sales, are collected in the month of the sale and in the
following month.
c The ending finished goods inventory equals of the following month's sales.
d The ending raw materials inventory equals of the following months raw materials
production needs. Each unit of finished goods requires pounds of raw materials. The
raw materials cost $ per pound.
e Regarding raw materials purchases, are paid for in the month of purchase and
in the following month.
f The direct labor wage rate is $ per hour. Each unit of finished goods requires
direct laborhours.
g Manufacturing overhead is entirely variable and is $ per direct laborhour.
h The variable selling and administrative expense per unit sold is $ The fixed selling
and administrative expense per month is $
The estimated cost of goods sold for February is closest to:
A $
B $
C $
D $
Litzinger Corporation makes one product. The ending raw materials inventory should
equal of the following months raw materials production needs. Each unit of
finished goods requires pounds of raw materials. The raw materials cost $ per
pound. The company estimates that it will need pounds of raw material to satisfy
production needs in June. The raw materials inventory balance at the end of May should
be closest to:
A $
B $
C $
D $
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