#18
Luchini Corporation makes one product and it provided thefollowing information to help prepare the master budget for thenext four months of operations:
The budgeted selling price per unit is $111. Budgeted unit salesfor April, May, June, and July are 7,100, 10,100, 13,300, and14,000 units, respectively. All sales are on credit.
Regarding credit sales, 40% are collected in the month of thesale and 60% in the following month.
The ending finished goods inventory equals 10% of the followingmonth's sales.
The ending raw materials inventory equals 30% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 5 pounds of raw materials. The raw materials cost $5.00per pound.
Regarding raw materials purchases, 40% are paid for in the monthof purchase and 60% in the following month.
The direct labor wage rate is $18.00 per hour. Each unit offinished goods requires 2.9 direct labor-hours.
Variable manufacturing overhead is $7.00 per direct labor-hour.Fixed manufacturing overhead is zero.
The estimated finished goods inventory balance at the end of Mayis closest to:
$111,986
$102,676
$26,999
$129,675
#19
LBC Corporation makes and sells a product called Product WZ.Each unit of Product WZ requires 3.5 hours of direct labor at therate of $14.50 per direct labor-hour. Management would like you toprepare a Direct Labor Budget for June.
The budgeted direct labor cost per unit of Product WZ wouldbe:
$18.00
$50.75
$4.14
$14.50
#18
Luchini Corporation makes one product and it provided thefollowing information to help prepare the master budget for thenext four months of operations:
The budgeted selling price per unit is $111. Budgeted unit salesfor April, May, June, and July are 7,100, 10,100, 13,300, and14,000 units, respectively. All sales are on credit.
Regarding credit sales, 40% are collected in the month of thesale and 60% in the following month.
The ending finished goods inventory equals 10% of the followingmonth's sales.
The ending raw materials inventory equals 30% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 5 pounds of raw materials. The raw materials cost $5.00per pound.
Regarding raw materials purchases, 40% are paid for in the monthof purchase and 60% in the following month.
The direct labor wage rate is $18.00 per hour. Each unit offinished goods requires 2.9 direct labor-hours.
Variable manufacturing overhead is $7.00 per direct labor-hour.Fixed manufacturing overhead is zero.
The estimated finished goods inventory balance at the end of Mayis closest to:
$111,986
$102,676
$26,999
$129,675
#19
LBC Corporation makes and sells a product called Product WZ.Each unit of Product WZ requires 3.5 hours of direct labor at therate of $14.50 per direct labor-hour. Management would like you toprepare a Direct Labor Budget for June.
The budgeted direct labor cost per unit of Product WZ wouldbe:
$18.00
$50.75
$4.14
$14.50
Related questions
| [The following information applies to the questionsdisplayed below.] |
Morganton Company makes one product and it provided thefollowing information to help prepare the master budget for itsfirst four months of operations: |
| a. | The budgeted selling price per unit is $65. Budgeted unit salesfor June, July, August, and September are 9,900, 30,000, 32,000,and 33,000 units, respectively. All sales are on credit. |
| b. | Forty percent of credit sales are collected in the month of thesale and 60% in the following month. |
| c. | Theending finished goods inventory equals 30% of the following monthâsunit sales. |
| d. | The ending raw materials inventory equals 20% of the followingmonthâs raw materials production needs. Each unit of finished goodsrequires 4 pounds of raw materials. The raw materials cost $2.50per pound. |
| e. | Forty percent of raw materials purchases are paid for in themonth of purchase and 60% in the following month. |
| f. | The direct labor wage rate is $12 per hour. Each unit offinished goods requires two direct labor-hours. |
| g. | The variable selling and administrative expense per unit sold is$1.90. The fixed selling and administrative expense per month is$69,000. |
Accordingto the production budget, how many units should be produced in Julyand,
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