Bonkowski Corporation Makes One Product and Has Provided the Following

question 214

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 accounts receivable balance at the end of February is closest to:

• A) $349,200
• B) $814,800
• C) $776,000
• D) $1,164,000

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Definitions:

Normal Good

A Normal Good is a type of good for which demand increases when income increases, and vice versa, holding all other factors constant.

Income Effect

The alteration in the income of a person or an economy and its impact on the demand for a particular good or service.

Leisure

The time available for ease and relaxation where no work is done, often considered as time spent away from business, work, job hunting, domestic chores, and education.

Workers' Incomes

The financial compensation received by employees for their labor, including wages, salaries, and bonuses.