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The budgeted required production for May is closest to: Multiple Choice 9,400 units

The budgeted required production for May is closest to: Multiple Choice 9,400 units

FINANCIAL ACCOUNTING
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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Hesterman 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): $ 118 April 7,800 May 9,400 June 14,000 July 12,100 Raw materials requirement per unit of output 3 pounds $ 3.00 per pound Raw materials cost Direct labor requirement per unit of output Direct labor wage rate 2.8 direct labor-hours $ 25.00 per direct labor-hour Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The budgeted required production for May is closest to:
Transcribed Image Text:Hesterman 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): $ 118 April 7,800 May 9,400 June 14,000 July 12,100 Raw materials requirement per unit of output 3 pounds $ 3.00 per pound Raw materials cost Direct labor requirement per unit of output Direct labor wage rate 2.8 direct labor-hours $ 25.00 per direct labor-hour Credit sales are collected: 40% in the month of the sale 60% in the following month The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The budgeted required production for May is closest to:
The budgeted required production for May is closest to: Multiple Choice 9,400 units 18,760 units 15,000 units 11,240 units
Transcribed Image Text:The budgeted required production for May is closest to: Multiple Choice 9,400 units 18,760 units 15,000 units 11,240 units
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