Chapter 8: Budgeting Mumbower Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): $94 April 8,200 May 10,600 June 10,100 July 15,200 Raw materials requirement 2 Pounds per unit of output Raw materials cost $1.00 per pound Direct labor requirement per unit of output 2.4 direct labor- hours Direct labor wage rate $23.00 per direct labor-hour Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 10% in the month of purchase 90% in the following month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 40% of the following month's raw materials production needs.