Rokosz Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:The budgeted selling price per unit is $104. Budgeted unit sales for October, November, December, and January are 6,900, 7,100, 11,300, and 15,300 units, respectively. All sales are on credit.Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month.The ending finished goods inventory equals 20% of the following month's sales.The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.5 direct labor-hours.The expected cash collections for November is closest to:

Question

Quizplus · Accepted Answer

The expected cash collections for November include 30% of November sales and 70% of October sales. November sales are 7,100 units, and October sales are 6,900 units. Therefore, cash collections for November = (30% of 7,100 units * $104) + (70% of 6,900 units * $104) = $221,520 + $502,320 = $723,840.

Rokosz Corporation Makes One Product and It Provided the Following