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Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: The
Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:
- The budgeted selling price per unit is $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 units, respectively. All sales are on credit.
- Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.
- The ending finished goods inventory equals 20% of the following month's sales.
- The ending raw materials inventory equals 30% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
- The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours.
The expected cash collections for November is closest to:
Group of answer choices
$502,320
$221,520
$723,840
$717,600
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