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 required production for February is closest to:

Question

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 required production for February is closest to:

Quizplus · Accepted Answer

The budgeted required production for February is computed as follows:
 11ea7761_17c0_6819_81a5_69e3fedd9938_TB2580_00 *March sales of 13,300 units × 30% = 3,990 units
** February sales of 12,000 units × 30%= 3,600 units

Bonkowski Corporation Makes One Product and Has Provided the Following