1. Charm Enterprises production budget shows the following units to be produced for the coming three months:

		April		May		June
Units to be produced		2,760		3,080		2,960

A finished unit requires three ounces of a key direct material. The March 31 Raw Materials Inventory has 2,772 ounces (oz.) of the material. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. Materials purchases in May should be?

Multiple Choice

• 9,132 oz.

• 9,240 oz.

• 6,468 oz.

• 11,904 oz.

• 6,576 oz.

2. Justin Company's budget includes the following credit sales for the current year: September, $27,000; October, $38,000; November, $32,000; December, $34,000. Credit sales are collected as follows: 10% in the month of sale, 65% in the first month after sale, 23% in the second month after sale, and 2% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales?

Multiple Choice

• $36,910.

• $34,110.

• $32,000.

• $31,510.

• $22,710.

3. Zhang Industries sells a product for $700. Unit sales for May were 300 and each month's sales are expected to grow by 2%. Zhang pays a sales manager a monthly salary of $3,500 and a commission of 1% of sales in dollars. Assume 25% of Zhang's sales are for cash. The remaining 75% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.

Multiple Choice

• $211,050.

• $157,500.

• $160,650.

• $210,000.

• $214,585.