Question
10. Doanne Food Processing expects to have 36,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The
10.
Doanne Food Processing expects to have 36,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: At the end of each month the firm desires its ending raw material inventory to be 10% of the next months production needs. Each finished unit requires three pounds of raw materials. Doannes budgeted purchases (in pounds) of raw materials for June would be:
426,000 | ||
414,000 | ||
456,000 | ||
420,000 |
15.
Salich Manufacturing Corporation has provided the following sales budget information: Cash sales are normally 40% of total sales; credit sales are expected to be collected in their entirety in the month following the month of sale. The amount of cash expected to be received from customers in September is:
$57,000 | ||
$55,000 | ||
$24,000 | ||
$58,000 |
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