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Hesterman Corporation Makes One Product and Has Provided the Following

Question 19

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Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Hesterman 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:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.If 39,720 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to: A)  $145,224 B)  $124,992 C)  $101,160 D)  $104,760 Credit sales are collected:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.If 39,720 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:


A) $145,224
B) $124,992
C) $101,160
D) $104,760

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