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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

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 $103
Budgeted unit sales (all on credit):
October 9,500
November 10,700
December 9,800
January 10,800
Direct labor requirement per unit of output 2.8 direct labor-hours
Direct labor wage rate $19.00 per direct labor-hour
Variable selling and administrative expense $1.60 per unit sold
Fixed selling and administrative expense $80,000 per month
Noncash fixed selling and administrative expense $20,000 per month

Credit sales are collected as follows:

  • 40% in the month of the sale
  • 60% in the following month

Finally, Corporation would like to have ending inventory at the end of each month equal 20% of the following month's sales.

A. What are the budgeted sales for November?

B. What are the expected cash collections for November?

C. What is the budgeted accounts receivable balance at the end of November?

D. What is the required production (in units) for November?

E. What is the total estimated direct labor cost for November?

F. What is the estimated total selling and administrative expense for November?

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