Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% in the month of the sale 70% in the following month $97 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor-hour $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month
Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): January February March April Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense Credit sales are collected: 30% in the month of the sale 70% in the following month $97 10,000 12,000 13,300 15,200 4 pounds $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor-hour $9.00 per direct labor-hour $ 3.10 per unit sold $ 70,000 per month
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Please help me with show calculation thanku
Transcribed Image Text:15
Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for
the next four months of operations:
Budgeted selling price per unit
Budgeted unit sales (all on credit):
January
February
March
April
Raw materials requirement per unit of output
Raw materials cost.
Direct labor requirement per unit of output
Direct labor wage rate
Predetermined overhead rate (all variable)
Variable selling and administrative expense.
Fixed selling and administrative expense
Credit sales are collected:
30% in the month of the sale.
70% in the following month
$.97
10,000
12,000
13,300
15,200
4 pounds
$ 1.00 per pound
2.5 direct labor-hours.
$23.00 per direct labor-hour
$9.00 per direct labor-hour
$ 3.10 per unit sold.
$ 70,000 per month
Transcribed Image Text: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 estimated net operating income (loss) for February is closest to:
Multiple Choice
Multiple Choice
O
$48,800
$86,000
$118,800
$85,000
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