Fuson Corporation Makes One Product and Has Provided the Following

question 17

Multiple Choice

Fuson 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 sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 10% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
-The budgeted accounts receivable balance at the end of November is closest to:

• A) $795,000
• B) $357,540
• C) $1,191,800
• D) $834,260

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a fixed amount of resources and technology.

Deep Depression

An extended period of significant decline in the economy, characterized by high unemployment, sharp decreases in output and trade, and widespread poverty.

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.