Rokosz Corporation makes one product and it provided the following information t

Question

Rokosz 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 $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 units, respectively. All sales are on credit.

Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.

The ending finished goods inventory equals 20% of the following month's sales.

The ending raw materials inventory equals 30% 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.

The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours.

The budgeted required production for November is closest to:

7,940 units

10,780 units

9,360 units

7,100 units

7,940 units

10,780 units

9,360 units

7,100 units

Explanation / Answer

SOLUTION

The budgeted required production for November is closest to 7,940 units

Units Budgeted sales in units 7,100 Add: Desired ending inventory (11,300 * 20%) 2,260 9,360 Less: Beginning inventory (7,100 *20%) (1,420) Required production 7,940

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.