Bonkowski Corporation makes one product and has provided the

Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations r unit $ 97 Budgeted selling price pe Budgeted unit sales (all on credit): January February March April 10,000 12,000 13,300 15,200 4 pounds Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense $ 1.00 per pound 2.5 direct labor-hours $ 23.00 per direct labor-hour $ 9.00 per direct labor-hour $ 3.10 per unit sold $70,000 per month Credit sales are collected 30% in the month of the sale

Solution

Raw materials inventory balance at the end of February = 55480*10%*1 = $5548