Corporation makes one product and it provided the following information to help
ID: 2585119 • Letter: C
Question
Corporation makes one product and it provided the following information to help 12) the master budget for the next four months of operations: a. Budgeted unit sales for April, May, June, and Jaly are 7,500, 1,900, 10,800 and 143 respectively. All sales are on credit. b. The ending finished goods inventory equals 30% of the following month's c. The end materials cost $5.00 per pound. If 72,000 pounds of raw materials are required for production in June, then the budgeted ing raw materials inventory equals 30% of the following month's raw materia production needs. Each unit of finished goods requires 6 pounds of raw materials. The rav raw material purchases for May is closest to: D) $455,100 B) $559,230 C) $347,100 A) $350,970 13) the budgeted income statement D) the production budget 13) The usual starting point for a master budget is A) the direct materials purchase budget. B C) the sales forecast or sales budget. 14) sales accord ing to the following schedule: 14) The BRS Corporation makes collections orn 30%in-month-orsaie 60% in month following sale 10% in second month following sale The following sales have been budgeted: Sales April May June 140,000 $ 130,000 150,000 D) $123,000 C) $137,000 Budgeted cash collections in June would be: B) $45,000 A) $85,000 UE/FALSE. Write T' if the statement is true and F' if the statement is false. 15) The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity.Explanation / Answer
12) purchase budget April May june july Expected sale units 7,500 11,900 10,800 Add Ending inventory 3570 3240 total needs 11,070 15,140 less beginning inventory -2250 -3,570 total purchase required 8,820 11,570 Raw materials budget May purchase required 11,570 pounds per unit required 6 total pounds required 69420 add:Ending inventory (72000*30%) 21600 total need 91020 less Beginning inventory (69,420*30%) -20826 total material purchase 70194 cost per pound 5 total cost of material purchased 350970 answer option a $350,970 13) option C) the sales forecast or sales budget 14) Budgeted cash collection for june june april (140,000*10%) 14,000 May (130,000*60%) 78,000 june (150,000*30%) 45,000 total cash collection 137,000 option C $137,000 is the answer