Petrin Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations The budgeted selling price per unit is $10 Budgeted unit sales for January February March, and April are 7,500, 10,600, 12.000, and 11700 units, respectively. All sales are 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 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 e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month The direct labor wage rate is $23.00 per hour Each unit of finished goods requires 26 direct labor hours Manufacturing overhead is entirely vanable and is $8.00 per direct laborhou h. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $70,000 The estimated cost of goods sold for February is closest to

Petrin Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations The budgeted selling price per unit is $10 Budgeted unit sales for January February March, and April are 7,500, 10,600, 12.000, and 11700 units, respectively. All sales are 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 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 e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month The direct labor wage rate is $23.00 per hour Each unit of finished goods requires 26 direct labor hours Manufacturing overhead is entirely vanable and is $8.00 per direct laborhou h. The variable selling and administrative expense per unit sold is $170. The fixed selling and administrative expense per month is $70,000 The estimated cost of goods sold for February 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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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: $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 $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget. a. The budgeted selling price per unit is $65. Budgeted unit sales for June, July, August, and September are 9,000, 21,000, 23,000, and 24,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales 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 unit sales. d. The ending raw materials inventory equals 20% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.70 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two…
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applies to the questions displayed below) Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $65 Budgeted unit sales for June July August, and September are 8200 12,000, 14,000, and 15,000 units, respectively. All sales are on credit b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equats 20% of the following month's unit 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 $2.00 per pound Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense…
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Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,900, 20,000, 22,000, and 23,000 units, respectively. All sales are on credit. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. 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 $2.50 per pound. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labor wage rate is $13 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.50. The fixed selling…
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Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods Inventory equals 20% of the following month's unit 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 $2.00 per pound. e. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $1.80.…