Petrini Corporation Makes One Product and It Provided the Following

question 14

Multiple Choice

Petrini 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 $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 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 30% of the following month's sales.The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound.Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours.Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000.The expected cash collections for February is closest to:

• A) $577,500
• B) $927,300
• C) $349,800
• D) $825,000

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Definitions:

Cohesive

Describes a group, organization, or other collection of individuals that is united or sticking together closely, often sharing common goals or attitudes.

Interpersonal Zones

The physical distances individuals maintain in social interactions, which can indicate levels of intimacy, comfort, or social norms.

Private Zone

An area of personal space or psychological boundary that individuals maintain for their comfort and autonomy.

Hall

Commonly references a physical space or corridor within a building, but without additional context, cannot be precisely defined.