Bonkowski Corporation Makes One Product and Has Provided the Following

question 116

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 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 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 estimated direct labor cost for February is closest to:

• A) $284,970
• B) $712,425
• C) $499,000
• D) $30,975

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Definitions:

Maintenance

Activities and practices aimed at keeping equipment, systems, and facilities in optimal working condition, as well as preserving the well-being and performance of employees.

Pre-Tax Income

The amount of income earned by a business or individual before any taxes have been deducted.

Publicly Traded

Refers to a company whose shares are available for purchase by the public on stock exchanges.

Tax Burden

The total amount of taxes paid by an individual or business, expressed as a percentage of income.