Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,60O, 12,000, and 11,700 units, respectively. All salesare on credit.b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.c. The ending finished goods inventory equals 30% of the following month's sales.d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials.The raw materials cost $4.00 per pound.e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours.g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000.The budgeted accounts receivable balance at the end of February is closest to: The budgeted accounts receivable balance at the end of February is closest to:Multiple Choice$777,000$816,200$1,166,000$349,800

Account Receivable at the end of February= Salary x 70%…

a. The budgeted selling price per unit is $110. Budgeted unit sales for Ja are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and c. The ending finished goods inventory equals 30% of the following mor d. The ending raw materials inventory equals 10% of the following month The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of f. The direct labor wage rate is $23.00 per hour. Each unit of finished go g. Manufacturing overhead is entirely variable and is $8.00 per direct lab h. The variable selling and administrative expense per unit sold is $1.70.

a. The budgeted selling price per unit is $110. Budgeted unit sales for Ja are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and c. The ending finished goods inventory equals 30% of the following mor d. The ending raw materials inventory equals 10% of the following month The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of f. The direct labor wage rate is $23.00 per hour. Each unit of finished go g. Manufacturing overhead is entirely variable and is $8.00 per direct lab h. The variable selling and administrative expense per unit sold is $1.70.

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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