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Waltzing Along Corp. is a manufacturer that makes one product.It provided the following information to help prepare the master budget for the next four months
Waltzing Along Corp. 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 $56.Budgeted unit sales for June, July, August, and September are 46,000;43,800;42,000;and 45,000 units, respectively.All sales are on credit.
- Regarding credit sales, 25% are collected in the month of the sale and 75% in the following month.
- The ending finished goods inventory equals 20% of the following month's sales.
- The ending raw materials inventory equals 15% of the following month's raw materials production needs.
- Each unit of finished goods requires 6 ounces of raw materials. The raw materials cost $1.50 per ounce.
- Regarding raw materials purchases, 15% are paid for in the month of purchase and 85% in the following month.
The budgeted accounts receivable balance at the end of August is closest to:
a.$1,764,000
b.$1,839,600
c.$1,932,000
d.$1,999,200
e.$2,427,600
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