11) New Kid in Town makes one product and has provided the following information:

Budgeted sales, February: 9,000 units

Raw materials requirement per unit of output: 6 pounds

Raw materials cost: $ 2.00 per pound

Direct labor requirement per unit of output: 3 direct labor-hours

Direct labor wage rate: $ 21.00 per direct labor-hour

Predetermined overhead rate (all variable): $ 10.00 per direct labor-hour

Variable selling and administrative expense: $ 1.10 per unit sold

Fixed selling and administrative expense: $ 80,000 per month

The estimated cost of goods sold for February is closest to:

A) $1,121,000

B) $675,000

C) $1,044,000

D) $945,000

12) Obladi Oblada Life Goes On LLC had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $80,000 $300,000

February $50,000 $200,000

March $40,000 $135,000

April $35,000 $120,000

May $45,000 $160,000

June $40,000 $140,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on sales:

60% in month of sale

30% in month following sale

10% in second month following sale

The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales.

The total cash collected during January by Obladi would be:

A) $ 317,500

B) $ 330,000

C) $ 237,500

D) $ 260,000