1.) Harrti Corporation has budgeted for the following sales:

July$446,600

August$581,600

September$615,800

October$890,800

November$738,000

December$698,000

Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?

Multiple Choice

$698,000

$147,600

$740,900

$593,300

2.) The following are budgeted data:

January February. March

Sales in units. 15,100. 20,200. 18,100

Production in units18,100. 19,100. 17,000

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Multiple Choice

18,575 pounds

19,675 pounds

18,525 pounds

19,625 pounds

3.) Roberts Enterprises has budgeted sales in units for the next five months as follows:

June4,510units

July7,150units

August5,310units

September6,720units

October3,710units

Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 902 units. The company needs to prepare a production budget for the second quarter of the year.

The total number of units to be produced in July is:

Multiple Choice

7,502 units

6,782 units

7,150 units

8,212 units

4.) LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.2 hours of direct labor at the rate of $21.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The company plans to sell 27,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 490 and 70 units, respectively. Budgeted direct labor costs for June would be:

Multiple Choice

$2,344,356

$2,363,106

$2,381,856

$559,500

5.) Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

August24,500units

September23,200units

October24,600units

November25,800units

December25,500units

The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 12,700 kilograms of Jurislon were on hand. The cost of Jurislon is $26 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.

The total cost of Jurislon to be purchased in August is:

Multiple Choice

$2,757,300

$2,427,100

$2,229,500

$2,627,950

6.) Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:

Sales are budgeted at $370,000 for November, $340,000 for December, and $320,000 for January.

Collections are expected to be 90% in the month of sale and 10% in the month following the sale.

The cost of goods sold is 80% of sales.

The company desires to have an ending merchandise inventory equal to 50% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $26,700.

Monthly depreciation is $20,000.

Ignore taxes.

Balance Sheet

October 31

Assets

Cash$25,000

Accounts receivable 81,000

Inventory 148,000

Property, plant and equipment, net of $512,000 accumulated depreciation 1,022,000

Total assets$1,276,000

Liabilities and Stockholders Equity

Accounts payable$282,000

Common stock 800,000

Retained earnings 194,000

Total liabilities and stockholders equity$1,276,000

The net income for December would be:

Multiple Choice

$21,300

$41,300

$26,300

$16,500