Rokosz Corporation Makes One Product and It Provided the Following

question 11

Multiple Choice

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 expected cash collections for November is closest to:

• A) $502,320
• B) $221,520
• C) $723,840
• D) $717,600

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Definitions:

Borderland

A place between or near recognized borders where no group of people has complete political control or cultural dominance.

Geographical Border

A naturally or artificially designated boundary separating distinct areas, countries, or territories.

Cultural Border

An invisible boundary based on cultural differences that separate areas or people, influencing identity, customs, and practices.

Plains Indians

Native American peoples who inhabited the Great Plains of the United States and Canada, known for their nomadic lifestyles and reliance on the buffalo.