Michard 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 $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit.b. Regarding credit sales, 20% are collected in the month of the sale and 80% In the following month.c. The ending finished goods Inventory equals 20% of the following month's sales.d. The ending raw materials Inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound.e. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% In the following month.f. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.g. The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000.The budgeted sales for May is closest to:Multiple Choice$950,000O$1,725,000О$1,612,500O$1,312,500

Budgeted unit sales for May: 10,500 unitsBudgeted selling price per unit: $125Budgeted sales for May…

Answered: Michard Corporation makes one product…

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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