Michard Corporation Makes One Product and It Provided the Following

question 198

Multiple Choice

Michard 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 $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit.
b. Regarding credit sales, 20% are collected in the month of the sale and 80% 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 4 pounds of raw materials. The raw materials cost $2.00 per pound.
e. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% in the following month.
f. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.
g. The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000.
-The budgeted required production for May is closest to:

• A) 11,160 units
• B) 13,260 units
• C) 15,360 units
• D) 10,500 units

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Definitions:

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound dedication to responsibility.

Self-Discipline

The capability to manage one's emotions and conquer personal shortcomings, as well as the strength to follow what one believes is correct, even when faced with temptations to give it up.

Conscientiousness

is a personality trait characterized by thoroughness, diligence, and the desire to do a task well.

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.