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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:

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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