Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
| Budgeted selling price per unit | $ 118 |
|---|---|
| Budgeted unit sales (all on credit): | |
| October | 9,600 |
| November | 10,100 |
| December | 13,700 |
| January | 11,300 |
| Raw materials requirement per unit of output | 3 | pounds |
|---|---|---|
| Raw materials cost | $ 4.00 | per pound |
| Direct labor requirement per unit of output | 2.7 | direct labor-hours |
| Direct labor wage rate | $ 23.00 | per direct labor-hour |
| Predetermined overhead rate (all variable) | $ 12.00 | per direct labor-hour |
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 10% 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 accounts receivable balance at the end of November is closest to:
▸ $795,000
▸ $357,540
▸ $1,191,800
▸ $834,260