10) Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: October November December Sales Revenue $42,000 $45,000 $50,400 Whistle Works sells each whistle for $12. They have a desired ending inventory for production of 20% of the next month's budgeted sales in units. How many units does Whistle Works need to produce in November? A) 3,840 units B) 46,680 units C) 3,660 units D) 3,890 units 11) Flawless Lawns Manufacturing produces lawn edger's. The company has a policy that the ending inventory in any month must be 10% of the following month's expected sales. On March 31, Flawless Lawns Manufacturing had 140 lawn edger's in inventory. Flawless Lawns Manufacturing expects to sell the following number of lawn edger's in each of the next four months: April 1,400 lawn edgers 2,650 lawn edgers June 1,600 lawn edgers July 1,200 lawn edgers May Required: Prepare a production budget for the second quarter, with a column for each month and for the quarter. 12) Natcher Corporation collects 60% of a month's sales in the month of sale, 30% in the month following sale, and 5% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are: August budgeted sales September budgeted sales October budgeted sales November budgeted sales $310,000 $300,000 $330,000 $230,000 The amount of cash that will be collected in November is budgeted to be A) $252,000 B) $218,500 C) $138,000 D) $290,500 13) Feeney Furniture prepared the following sales budget: Month March April May June Cash Sales $24,000 $39,000 $36,000 $51,000 Credit Sales $11,000 $18,000 $38,000 $46,000 Credit collections are 10% two months following the sale, 40% in the month following the sale, and 40% in the month of sale. The remaining 10% is expected to be uncollectible. What are the total cash collections in June at Feeney Furniture? A) $35,400 B) $86,400 C) $27,000 D) $97,000 14) Fosnight Enterprises prepared the following sales budget: Month March April May June Budgeted Sales $6000 $12,000 $11,000 $20,000 000 The expected gross profit rate is 10% and the inventory at the end of February was $15,000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What is the desired ending inventory on May 31? A) $600 B) $18,000 C) $2970 D) $5400