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Darke Corporation Makes One Product and Has Provided the Following

Question 103

Multiple Choice

Darke Corporation makes one product and has provided the following information:Budgeted unit sales for October, November, and December are 7,600, 9,000, and 10,100 units respectively.The ending finished goods inventory equals 40% of the following month's sales.Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $1.00 per pound.The direct labor wage rate is $19.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.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

Correct Answer:

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