11.

The following forecasted sales pertain to Micah Company:

Month	Sales
April	$200,000
May	250,000
June	150,000
July	100,000

Collection pattern:

60% in month of sale

40% in month following the sale

Accounts receivable as of March 31	$35,000
Finished goods inventory as of March 31	4,000 units

The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20% of the next month's sales. How many units are expected to be produced in April?

A)19,000 units B)20,000 units C)25,000 units D)21,000 units

6.

Yummy Jams Company produces a line of jams. Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:

October	75,000
November	98,000
December	63,000

Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3 percent of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40 percent of a month's purchases in that month, and the remaining 60 percent the following month.What is the dollar cost of purchases for October?

A)$23,300 B)$22,707 C)$23,300 D)$19,925 E)$18,450

13.

Which of the following is not an advantage of participative budgeting?

A)It fosters a sense of managerial responsibility. B)It encourages the introduction of budgetary slack. C)It encourages a higher level of performance. D)It fosters a sense of creativity in managers. E)It encourages greater goal congruence.

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