Raw materials purchases are paid:30% in the month of purchase70% in the following monthThe ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory shouldequal 10% of the following month's raw materials production needs.The estimated cost of goods sold for February is closest to: Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget forthe next four months of operations:Budgeted selling price per unitBudgeted unit sales (all on credit):JanuaryFebruary- MarchAprilRaw materials requirement per unit of outputRaw materials costDirect labor requirement per unit of outputDirect labor wage ratePredetermined overhead rate (all variable)Variable selling and administrative expenseFixed selling and administrative expenseCredit sales are collected:30% in the month of the sale70% in the following monthRaw materials purchases are paid:$9710,00012,00013,30015,2004 pounds$ 1.00 per pound2.5 direct labor-hours$23.00 per direct labor-hour$9.00 per direct labor-hour$ 3.10 per unit sold$ 70,000 per month

Cost of goods sold means the cost of goods which has been actually sold out during the year. When we…

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 shoule equal 10% of the following month's raw materials production needs. The estimated cost of goods sold for February is closest to:

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 shoule equal 10% of the following month's raw materials production needs. The estimated cost of goods sold for February is closest to:

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 3PB: Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co.,...

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Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
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