139. Cahuilla Corporation predicts the following sales in units for the coming four months:

		April		May		June		July
Sales in Units		430		470		490		430

Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 172 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 280 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted cost of direct material B during May should be:

Multiple Choice

• $7,116.

• $478.

• $466.

• $9,267.

• $5,019.

26. Zhang Industries budgets production of 350 units in June and 360 units in July. Each finished unit requires 5 pounds of raw material K, which costs $6 per pound. Each months ending inventory of raw materials should be 20% of the following months budgeted production. The June 1 raw materials inventory has 350 pounds of raw material K. Compute budgeted cost of purchases for raw material K for June

Multiple Choice

• $10,560.

• $10,620.

• $10,500.

• $10,800.

• $8,700.

28. A machine with a cost of $136,000, accumulated depreciation of $88,000, and current year depreciation expense of $18,500 is sold for $42,400 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Multiple Choice

• $18,500.

• $27,100.

• $5,600.

• $42,400.

• $45,600.

33. On February 15, Jewel Company buys 7,400 shares of Marcelo Corp. common at $28.57 per share plus a brokerage fee of $415. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.19 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.34 per share less a brokerage fee of $270. The fair value of the remaining 3,700 shares is $29.54 per share. The amount that Jewel Company should report in the asset section of its year-end December 31 balance sheet for its investment in Marcelo Corp. is:

Multiple Choice

• $6,037.

• $2,372.

• $211,833.

• $109,298.

• $3,382.

34. On February 15, Jewel Company buys 7,100 shares of Marcelo Corp. common stock at $28.54 per share plus a brokerage fee of $405. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.16 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.31 per share less a brokerage fee of $255. The fair value of the remaining shares is $29.51 per share. The impact on Jewels net income as a result of its investment in Marcelo Corp. was a(n) (Round your intermediate dollar values to the nearest dollar amount):

Multiple Choice

• Increase to income of $10,512.

• Increase to income of $3,241.

• Decrease to income of $2,276.

• Decrease to income of $8,236.

• Increase to income of $5,580.

42. Wichita Industries' sales are 20% for cash and 80% on credit. Credit sales are collected as follows: 40% in the month of sale, 50% in the next month, and 10% in the following month. On December 31, the accounts receivable balance includes $15,000 from November sales and $45,000 from December sales. Assume that total sales for January and February are budgeted to be $53,000 and $106,000, respectively. What are the expected cash receipts for February from current and past sales?

Multiple Choice

• $42,400.

• $43,700.

• $51,400.

• $83,820.

• $28,700.