Michard Corporation Makes One Product and It Provided the Following

question 52

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.
-If 54,480 pounds of raw materials are required for production in June,then the budgeted cost of raw material purchases for May is closest to:

• A) $148,752
• B) $89,280
• C) $121,968
• D) $95,184

Understand the impact of different payment amounts on the total interest paid over the life of a loan.

Apply mathematical skills to calculate loan duration based on monthly payments and interest rates.

Grasp the concepts of capitalized interest on unsubsidized loans and its long-term financial impact.

Calculate the time needed to save for significant purchases based on a fixed savings rate.

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Definitions:

Collectivist Cultures

Societies that prioritize group goals over individual aims, emphasizing interdependence and community.

Sense Of Self

An individual's perception or awareness of themselves, encompassing self-identity, self-worth, and the continuity of one's personality over time.

Personal Pronouns

Words used in language to refer to the speaker, the listener, or someone or something mentioned in the conversation (e.g., I, you, he, she, it).

Proper Nouns

Names that specify unique entities, such as people, places, organizations, and sometimes things, which are usually capitalized in English.