Fuson Corporation Makes One Product and Has Provided the Following

question 249

Multiple Choice

Fuson 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 sale70% in the following monthRaw materials purchases are paid:30% in the month of purchase70% in the following monthThe ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.If 40,380 pounds of raw materials are required for production in December, then the budgeted raw material purchases for November is closest to:

• A) 32,280 pounds
• B) 38,556 pounds
• C) 31,380 pounds
• D) 35,418 pounds

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Definitions:

Conception

The process of the sperm fertilizing the ovum, resulting in the formation of a zygote, the earliest developmental stage of the embryo.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of pregnancy.

Chromosomes

Structures within cells that contain DNA and carry genetic information.

Environmental Factors

Environmental Factors encompass all the external conditions and influences affecting the life and development of an organism, including social, cultural, and physical conditions.