1.Alta Vista Company plans to sell 90,000 units in June and 135,000 units in July. The companys policy is to keep 15% of the next month's sales in ending inventory. If the ending inventory in May was consistent with this policy, how many units should be produced in June?

110,250 units

83,250 units

96,750 units

123,750 units

There is not enough information to answer this question.

2.All of the following appear on the direct materials purchases budget except:

units to be produced.

projected sales in units.

quantity of direct materials to be purchased.

quantity of desired direct materials ending inventory.

None of the answer choices is correct.

3.The amount of cash paid out for overhead each period does not equal the total overhead costs incurred during the period because:

overhead expenses rarely require cash payments.

overhead expenses only require cash payments for factory rent.

overhead expenses only require cash payments for indirect materials.

depreciation expense does not require a cash payment.

None of the answer choices is correct.

4.Victoria Company's policy is to keep 20% of the next month's sales in ending inventory. If Victoria meets this policy for its ending inventory in May, and sales are expected to be 14,000 units in June and 20,000 units in July, how many units need to be produced in June?

20,800 units

12,800 units

18 000 units

15,200 units

None of the answer choices is correct.

5.Freeman Company plans to sell 65,000 units in June and 72,500 units in July. Freemans policy is to keep 30% of the next month's sales in ending inventory. If the ending inventory in May was consistent with this policy, how many units should be produced in June?

86,750 units

106,250 units

67,250 units

62,750 units

None of the answer choices is correct.

6.When an employee is paid a bonus for meeting budgeted sales goals, all of the following are ways the employee might manipulate the numbers to improve her chances of getting the bonus except:

underestimating budgeted costs.

overestimating budgeted costs.

underestimating sales growth.

underestimating budgeted sales.

All of the answer choices are correct.