1)

Assume a merchandising companys estimated sales for January, February, and March are $117,000, $137,000, and $127,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

$77,120

$78,120

$75,120

$72,120

2)

Assume a merchandising companys estimated sales for January, February, and March are $117,000, $137,000, and $127,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

$77,120

$78,120

$75,120

$72,120

3)

Assume a companys budgeted unit sales and its required production in units for April are 84,000 units and 82,000 units, respectively. The direct labor-hours required per unit is 1.75 hours and the direct labor wage rate is $15.75 per hour. What is the budgeted direct labor cost for April?

Multiple Choice

$2,260,125

$2,307,875

$2,300,207

$2,315,250