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: Budgeted selling price per unit$ 97Budgeted unit sales (all on credit): January10,000February12,000March13,300April15,200 Raw materials requirement per unit of output4poundsRaw materials cost$ 1.00per poundDirect labor requirement per unit of output2.5direct labor-hoursDirect labor wage rate$ 23.00per direct labor-hourPredetermined overhead rate (all variable)$ 9.00per direct labor-hourVariable selling and administrative expense$ 3.10per unit soldFixed selling and administrative expense$ 70,000per month Credit sales are collected:30% in the month of the sale70% in the following monthRaw materials purchases are paid:30% in the month of purchase70% in the following monthThe 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 estimated net operating income (loss) for February is closest to: