13 Kyoto, Inc. predicts the following sales in units for the coming four months: April May June July Sales in units.......... 240 280 300 240 Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires four pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs. The budgeted purchases of pounds of raw material B during May should be: A. 1,418 lb B. 1,460 lb C. 1,502 lb D. 1134.4 lb E. 283 lb. 14 The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be: Sales (50,000 units) $1,000,000 Costs: Direct materials $270,000 Direct labor 240,000 Fixed factory overhead 139,980 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 95,980 Pretax income $ 40,020 A. $138,000 B. $172,420 C. $262,500 D. $275,862 E. $862,000. 15 Mach Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead and what is the amount contributed? Cost of Direct Indirect Dept. Sales Goods Sold Expenses Expenses $1,000,000 $700,000 $100,000 $80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000 A. Dept. 3; $400,000 B. Dept. 1; $1,000,000. C. Dept. 2; $310,000