1

A department store has budgeted sales of 12,700 men's coats in September. Management wants to have 6,700 coats in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,700 coats. What is the dollar amount of the purchase of suits if each coat has a cost of $82.

2.

A company's history indicates that 30% of its sales are for cash and the rest are on credit. Collections on credit sales are 30% in the month of the sale, 40% in the next month, and 25% the following month. Projected sales for January, February, and March are $71,000, $96,000 and $106,000, respectively. The March expected cash receipts from current and prior credit sales is:

3.

Zhang Industries sells a product for $800. Unit sales for May were 400 and each month's sales are expected to grow by 4%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 3% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.

4.

Cahuilla Corporation predicts the following sales in units for the coming four months:

	April		May		June		July
Sales in units	310		350		370		310

Each month's ending Finished Goods Inventory in units should be 30% of the next month's sales. March 31 Finished Goods inventory is 93 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 270 pounds of direct material B. Each month's ending Raw Materials Inventory should be 20% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be: