Luchini Corporation Makes One Product and It Provided the Following

question 84

Multiple Choice

Luchini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.
B. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.
C. The ending finished goods inventory equals 10% of the following month's sales.
D. 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 $5.00 per pound.
E. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.
F.The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours.
G.Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero.
If 66,850 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

• A) 52,100 pounds
• B) 72,155 pounds
• C) 87,785 pounds
• D) 56,525 pounds

---

Definitions:

Emotional

Relating to a person's feelings and emotions, encompassing their ability to experience, express, and manage a wide range of emotional states.

Sociohistorical Context

The background of social and historical influences on a particular event, idea, or movement.

Computer Training

The education and skill development process for learning how to use computers effectively, including software applications, programming, and system management.

Menopause

The time in a woman's life, typically between the ages of 45 and 55, when her menstrual cycles cease, marking the end of reproductive capability.