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Kesselring Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: Budgeted unit sales (all on credit): July 8,400 August 8,800 September 12,200 Raw materials requirement per unit of output 4 pounds Raw materials cost $ 3.00 per pound Direct labor requirement per unit of output 2.8 direct labor-hours Direct labor wage rate $ 18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to:

Respuesta :

Karabo99

Answer:

The budgeted finished goods inventory balance at the end of August is closest to any balance closest to $454816.

Explanation:

For August:

budgeted unit sales                                            8800

desired ending inventory(12200*40%)              4880

direct raw material(4880*4*3)                             58560

direct labor(4880*2.8*18)                                     245952

variable overhead(4880*2.8*11)                           150304

budgeted finished goods inventory balance     454816

Therefore, The budgeted finished goods inventory balance at the end of August is closest to any balance closest to $454816.

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