Bonkowski Corporation Makes One Product and Has Provided the Following

question 214

Multiple Choice

Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected:
30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
The budgeted accounts receivable balance at the end of February is closest to:

• A) $349,200
• B) $814,800
• C) $776,000
• D) $1,164,000

---

Definitions:

Convenient

Describes something arranged or existing for ease and comfort or located in a way that makes it easy to reach.

Living Expenses

The costs associated with daily living, including housing, food, transportation, and utilities.

Live Alone

The act or state of residing in a dwelling by oneself without cohabitants.

Majority

The greater part or number; often used to denote the age at which a person gains full legal rights and responsibilities.