Question
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started