Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a.

image text in transcribed
image text in transcribed
Rokosz 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 $104. Budgeted unit sales for October, November, December, and January are 6,900, 7100, 11,300, and 15,300 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month's sales. d. The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours. If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to: Multiple Choice $91,880 If 60,500 pounds of raw materials are required for production in December, then the budgeted cost of raw material purchases for November is closest to: Multiple Choice $91,880 0 $139,520 O $79,400 $115.700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Efficient Auditing Of Private Companies A Guide To Audit Planning Implementation And Control

Authors: The Institute Of Chartered Accountants

1st Edition

1841400432, 978-1841400433

More Books

Students also viewed these Accounting questions