Bonkowski 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): January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable). Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month $ 97 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor- hour per direct labor- hour $9.00 $ 3.10 per unit sold $ 70,000 per month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the followinn month's raw materiale noduction nearte
Bonkowski 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): January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable). Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month $ 97 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor- hour per direct labor- hour $9.00 $ 3.10 per unit sold $ 70,000 per month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the followinn month's raw materiale noduction nearte
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Bonkowski 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):
January
February
March
April
Raw materials requirement per unit of output
Raw materials cost
Direct labor requirement per unit of output
Direct labor wage rate
Predetermined overhead rate (all variable)
Variable selling and administrative expense
Fixed selling and administrative expense
Credit sales are collected:
30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
$ 97
10,000
12,000
13,300
15, 200
4 pounds
$ 1.00 per pound
2.5 direct labor-hours
$ 23.00 Per direct labor-
hour
per direct labor-
hour
$9.00
$ 3.10 per unit sold
$ 70,000 per month
The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the
followinn month's raw materiale production nearte
Transcribed Image Text:Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the
following month's raw materials production needs.
The estimated unit product cost is closest to:
Multiple Choice
$84.00
$22.50
$61.50
$70.50
D
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