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

	April	May	June
Units	1,600	1,900	1,750

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 $5 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are:

a.$40,500.

b.$17,500.

c.$26,250.

d. $38,250.

11.

Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $400,000, of which $240,000 pertain to sales that were made during June. Budgeted sales for July are $1,250,000. Ross collects 70% of sales in the month of sale; 20% in the following month; and the final 10% in the second month after the sale.

What are Ross's budgeted collections for July?

a. $915,000

b. $1,275,000

c. $1,195,000

d. $939,000