99) Hesterman Corporation makes one product and has provided the following information tohelp prepare the master budget for the next four months of operations:2$118Budgeted selling price per unitBudgeted unit sales (all on credit):АprilMayJune7,8009,40014,00012,100JulyRaw materials requirement per unit of outputRaw materials costDirect labor requirement per unit of outputDirect labor wage rate3 pounds3.00 per pound2.8 direct labor-hours$ 25.00 per direct labor-hourCredit sales are collected:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. Theending raw materials inventory should equal 20% of the following month's raw materialsproduction needs.The estimated direct labor cost for May is closest to:A) $786,800B) $31,472C) $534,000D) $281,000

Calculation of Number of units of Finished Goods to be produced during May May Units…

99) Hesterman Corporation makes one product and has provided the following help prepare the master budget for the next four months of operations: 24 118 Budgeted selling price per unit Budgeted unit sales (all on credit): April May June July 7,800 9,400 14,000 12,100 Raw materials requirement per unit of output Raw materials cost 3 pounds $ 3.00 per pound 2.8 direct labor-hours $ 25.00 per direct labor-hour Direct labor requirement per unit of output Direct labor wage rate Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The estimated direct labor cost for May is closest to: A) $786,800 B) $31,472 C) $534,000 D) $281,000

99) Hesterman Corporation makes one product and has provided the following help prepare the master budget for the next four months of operations: 24 118 Budgeted selling price per unit Budgeted unit sales (all on credit): April May June July 7,800 9,400 14,000 12,100 Raw materials requirement per unit of output Raw materials cost 3 pounds $ 3.00 per pound 2.8 direct labor-hours $ 25.00 per direct labor-hour Direct labor requirement per unit of output Direct labor wage rate Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The estimated direct labor cost for May is closest to: A) $786,800 B) $31,472 C) $534,000 D) $281,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): $ 118 April 7,800 May 9,400 June 14,000 July 12,100 Raw materials requirement per unit of output 3 pounds $ 3.00 per pound Raw materials cost Direct labor requirement per unit of output Direct labor wage rate 2.8 direct labor-hours $ 25.00 per direct labor-hour Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The budgeted required production for May is closest to:
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