1.

Aloan Co. provides the following sales forecast for the next three months:

	January		February		March
Sales units	2,100		3,200		4,100

The company wants to end each month with ending finished goods inventory equal to 10% of the next months sales. Finished goods inventory on December 31 is 210 units. The budgeted production units for January are:

Multiple Choice

• 2,100 units.

• 2,420 units.

• 21 units.

• 2,210 units.

• 1,990 units.

2.

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

	April		May		June		July
Sales in Units	250		290		310		250

Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finished Goods inventory is 75 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 210 pounds of 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:

Multiple Choice

• 1,476 lbs.

• 296 lbs.

• 1,772 lbs.

• 292 lbs.

• 1,184 lbs.

3.

Junior Snacks reports the following information from its sales budget:

Expected Sales:	October	$	141,000
	November		149,000
	December		185,000

All sales are on credit and are expected to be collected 40% in the month of sale and 60% in the month following sale. The total amount of cash expected to be received from customers in November is:

Multiple Choice

• $144,200.

• $84,600.

• $149,000.

• $233,600.

• $59,600.

4.

Funcycle Manufacturing's budget includes the following credit sales for the current year: September, $162,000; October, $153,000; November, $137,000; December, $174,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 55% in the first month after sale, and 30% in the second month after sale. What are the cash collections of credit sales in the month of December?

Multiple Choice

• $26,100.

• $121,250.

• $101,450.

• $174,000.

• $147,350.