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15. Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials

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15. Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (ED) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A) $79,200. B) $80,400. C) $81,600. D) $82,800 16. Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A) $579,600. B) $590,400 C) $601,200 D) $648,000. 17. Genius Professor Mullen Company has the following budgeted sales: January $80,000, February $120,000, and March S100,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts (CR.J)during March are: A) S112,000. B) $106,000 C) $105,000 D) $100,000 18. Lao Shu Mouse Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters (75%) of all purchases are paid for in the month of purchase, and the other one-fourth (25%) are paid for in the month following the month of purchase. How much will August's cash disbursements (CDJ) for materials purchases be? A) $67,500 B) $78,750 C) S101,250 D) $105,000 19. Lao Xiao Miao Company has the following budgeted sales: July $100,000, August $150,000, and September $125,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts (CR) during September are A) S140,000 B) $132,500. C) $131,250. D) $125,000. Page 4

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