1a. Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,300 units, April 13,900, May 16,900 and June 21,700. Meadow Companys ending finished goods inventory policy is 15% of the following months sales. What is budgeted ending finished goods inventory for May?

a) 3,255

b) 2,535

c) 1,545

d) 2,085

1b. Johnson Inc. produces leather handbags. Johnson Inc. estimates it will use 3,500 square meters of leather in production in August, and 3,750 square meters of leather in production in September. Johnson Inc. leather inventory policy is 30% of next months production needs. What will leather purchases be in August?

a) 3,425 square meters

b) 3,500 square meters

c) 3,575 square meters

d) 4,625 square meters

1c. Walnut has forecast sales for the next three months as follows: July 4,600 units, August 6,100 units, September 7,700 units. Walnut's policy is to have an ending inventory of 45% of the next month's sales needs on hand. July 1 inventory is projected to be 1,900 units. Selling and administrative costs are budgeted to be $21,000 per month plus $12 per unit sold. What are budgeted selling and administrative expenses for July?

a) $76,200

b) $110,940

c) $65,340

d) $71,700