Bonkowski Corporation Makes One Product and Has Provided the Following

question 4

Multiple Choice

Bonkowski 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 30% 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 sales for February is closest to:

• A) $1,474,400
• B) $1,290,100
• C) $1,164,000
• D) $970,000

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