Hesterman Corporation Makes One Product and Has Provided the Following

question 19

Multiple Choice

Hesterman 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:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.If 39,720 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:

• A) $145,224
• B) $124,992
• C) $101,160
• D) $104,760

Comprehend the characteristics and marketing strategies of specialty products.

Analyze consumer behavior and decision-making processes in product selection.

Recognize the different types of support products in business and their purposes.

Understand the role of industrial services in supporting business operations.

---

Definitions:

Compressed Air

Air that is pressurized and contained under greater pressure than the atmosphere, used in various tools, machines, and for cleaning or inflating purposes.

Bicycle Hand/Foot Pump

A manually operated device used to inflate bicycle tires by pushing air into them through a hose and valve system.

Cardboard Tube

A cylindrical form made of cardboard, often used as a core for winding materials like paper towels, fabric, or as packaging for shipping.

Helium Air Balloon

A balloon filled with helium gas, which is lighter than air, causing the balloon to float.