Fuson 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): October November December January 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) 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 $ 118 9,600 10,100 13,700 11,300 3 pounds $ 4.00 per pound 2.7 direct labor-hours. per direct labor- hour $ 23.00 $ 12.00 per direct labor- hour The ending finished goods inventory should equal 10% 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 finished goods inventory balance at the end of November is closest to:

Fuson 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): October November December January 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) 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 $ 118 9,600 10,100 13,700 11,300 3 pounds $ 4.00 per pound 2.7 direct labor-hours. per direct labor- hour $ 23.00 $ 12.00 per direct labor- hour The ending finished goods inventory should equal 10% 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 finished goods inventory balance at the end of November is closest to:

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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