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She's A Star, Inc. is a manufacturer that makes one product.It provided the following information to help prepare the master budget for the next four
She's A Star, Inc. is a manufacturer that makes one product.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 $62.Budgeted unit sales for June, July, August, and September are 28,400;30,000;33,400;and 36,200 units, respectively.All sales are on credit.
- The ending finished goods inventory equals 15% of the following month's sales.
- The ending raw materials inventory equals 30% of the following month's raw materials production needs.
- Each unit of finished goods requires 8 ounces of raw materials. The raw materials cost $2.00 per ounce.
- The direct labor wage rate is $12.00 per hour. Each unit of finished goods requires 1.5 direct labor-hours.
- Variable manufacturing overhead is $6.00 per direct labor-hour. Fixed manufacturing overhead is zero.
The estimated finished goods inventory balance at the end of August is closest to:
a.$146,448
b.$162,336
c.$193,500
d.$215,430
e.$233,490
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