1. During its first year of operations, Brown Company incurred the following product costs:

Direct materials used in production $151,500

Direct labor $76,200

Manufacturing overhead $89,200

The Brown Company's ending Work in Process Inventory amounted to $21,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?

Multiple Choice

• $316,900.

• $295,900.

• $151,500.

• $227,700.

2. On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:

August sales (actual)	$	46,000
September sales (actual)	$	56,000
October sales (estimated)	$	26,000
November sales (estimated)	$	76,000
December sales (estimated)	$	66,000

Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.

Budgeted collections from customers in October total:

Multiple Choice

• $32,400.

• $47,400.

• $37,000.

• $128,000.

3. Sherman has budgeted sales for the upcoming quarter as follows:

	April	May	June
Units	1,800	2,100	1,950

The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $6 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are:

Multiple Choice

• $36,450.

• $35,100.

• $23,400.

• $11,700.