1.If budgeted beginning inventory is $8,950, budgeted ending inventory is $10,180, and budgeted cost of goods sold is $10,910, budgeted purchases should be:

Multiple Choice

• $1,230

• $1,960

• $12,140

• $9,680

• $730

2.Ratchet Manufacturing's August sales budget calls for sales of 5,000 units. Each month's unit sales are expected to grow by 4%. The product selling price is $20 per unit. The expected total sales dollars for September's sales budget are:

Multiple Choice

• $100,000.

• $96,000.

• $104,000.

• $108,000.

• $5,200. 3 Question -

  Flagstaff Company has budgeted production units of 9,300 for July and 9,500 for August. The direct materials requirement per unit is 2 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 30% of the units of budgeted production in the following month. There was 5,580 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.20 per ounce, is:

  Multiple Choice

• $22,464.

• $29,160.

• $15,624.

• $22,176.

• $22,320.