1. Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units 330 370 390 330 Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finished Goods inventory is 99 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 290 pounds of B. Each month's ending Raw Materials Inventory should be 20% of the following month's production needs. The budgeted cost of direct material B during May should be:

• $376.

• $4,512.

• $6,756.

• $5,628.

2. The Ballentine Company expects sales for June, July, and August of $52,000, $58,000, and $48,000, respectively. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 60% of its credit sales in the month following sale, 35% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?

• $86,900.

• $29,150.

• $74,600.

• $50,750.

• $60,500.

3.

Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following sales for the first four months of the current year:

	Jan.		Feb.		March		April
Sales in Units	2,650		2,850		3,050		2,550

Ending inventory for each month should be 10% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?