Darke Corporation Makes One Product and Has Provided the Following

question 80

Multiple Choice

Darke Corporation makes one product and has provided the following information:

a.Budgeted unit sales for October, November, and December are 7,600, 9,000, and 10,100 units respectively.
b.The ending finished goods inventory equals 40% of the following month's sales.
c.Each unit of finished goods requires 5 pounds of raw materials.The raw materials cost $1.00 per pound.
d.The direct labor wage rate is $19.00 per hour.Each unit of finished goods requires 3.0 direct labor-hours.
e.Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour.

The estimated finished goods inventory balance at the end of November is closest to:

• A)$294,920
• B)$383,800
• C)$133,320
• D)$250,480

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