Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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. Regarding credit sales, 15% are collected in the month of the sale and 85% in the following month. 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. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. The budgeted accounts receivable balance at the end of July is closest to: a. $1,760,180 b. $1,581,000 C. $1,775,680 d. $1,496,680 e $1,116,000
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