Luchini Corporation Makes One Product and It Provided the Following

question 201

Multiple Choice

Luchini 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 $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.
b. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.
c. The ending finished goods inventory equals 10% 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 $5.00 per pound.
e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.
f. The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours.
g. Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero.
-The budgeted accounts receivable balance at the end of May is closest to:

• A) $747,000
• B) $448,440
• C) $672,660
• D) $1,121,100

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An autoimmune disease that causes chronic inflammation of the joints and other parts of the body, leading to pain, swelling, and potential loss of function.

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The process or measures taken to reduce or manage the body's inflammatory response to injury, infection, or chronic conditions.

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Redness of the skin typically caused by increased blood flow due to inflammation, injury, or infection.