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Petrini 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 $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 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 30% of the following month's sales.
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 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 $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours.
g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.
h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000.
-The budgeted sales for February is closest to:
Boers
Descendants of the Dutch-speaking settlers of the Cape Colony in southern Africa during the 17th and 18th centuries, known for their role in the Boer Wars against British rule.
Republic of the Transvaal
A historical 19th-century Boer state in Southern Africa that gained independence from the United Kingdom in 1852 until its annexation after the Second Boer War.
Orange Free State
A historical Boer state in southern Africa that existed from 1854 to 1902, becoming a British colony thereafter.
Suez Canal
A man-made waterway in Egypt, opened in 1869, connecting the Mediterranean Sea to the Red Sea, significantly reducing travel time for maritime trade between Europe and Asia.
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