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KuoKuts makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted
KuoKuts makes one product and it provided the following information to help prepare the master budget for its first four months of operations:
- The budgeted selling price per unit is $61. Budgeted unit sales for May, June, July, and August are 9,000, 11,000, 13,000, and 12,000 units, respectively. All sales are on credit.
- 35% of credit sales are collected in the month of the sale and 65% in the following month.
- The ending finished goods inventory equals 20% of the following months unit sales.
- The ending raw materials inventory equals 19% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $9.00 per pound.
- 25% of raw materials purchases are paid for in the month of purchase and 75% in the following month.
What are the expected cash collections during June?
Round your answer to the nearest whole number.
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