Rokosz Corporation Makes One Product and It Provided the Following

question 228

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:
a. 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.
b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.
c. The ending finished goods inventory equals 20% of the following month's sales.
d. 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.
e. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours.
-The budgeted required production for November is closest to:

• A) 7,940 units
• B) 10,780 units
• C) 9,360 units
• D) 7,100 units

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Definitions:

Dutch Economy

Refers to the economic system and practices of the Netherlands, characterized by its highly mechanized agricultural sector, significant international trade, and advanced industrial base.

Trading Partner

A country or entity with which another country engages in the exchange of goods and services.

European Monetary Union

An agreement among European Union member countries to use a single currency, the euro, and to coordinate their monetary policies.

Highly Productive Economies

Economies that are able to produce a significant amount of goods and services per unit of input.