Bonkowski Corporation Makes One Product and Has Provided the Following

question 40

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 required production for February is closest to:

• A) 12,390 units
• B) 19,590 units
• C) 15,990 units
• D) 12,000 units

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