1.)Jeter Corporation had net income of $226,000 based on variable costing. Beginning and ending inventories were 7,400 units and 12,800 units, respectively. Assume the fixed overhead per unit was $5 for both the beginning and ending inventory. What is net income under absorption costing?

$290,000

$253,000

$280,000

$327,000

$226,000

2.)

Frankie's Chocolate Co. reports the following information from its sales budget:

Expected Sales:	July	$ 97,000
	August	117,000
	September	127,000

Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

$120,000.

$38,100.

$127,000.

$81,900.

$208,900.

3.)

Western Company is preparing a cash budget for June. The company has $10,600 cash at the beginning of June and anticipates $31,400 in cash receipts and $37,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:

Borrow $5,900.

Borrow $10,000.

Borrow $5,300.

Repay $4,700.

Repay $5,300.

4.)

Zhang Industries sells a product for $730. Unit sales for May were 700 and each month's sales are expected to exceed the prior month's results by 3%. Compute the total sales dollars to be reported on the sales budget for month ended June 30.

$511,000.

$495,670.

$664,300.

$517,730.

$526,330.

5.)

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
a.	Beginning cash balance on June 1, $95,300.
b.	Cash receipts from sales, $419,500.
c.	Budgeted cash disbursements for purchases, $274,500.
d.	Budgeted cash disbursements for salaries, $96,300.
e.	Other budgeted cash expenses, $58,300.
f.	Cash repayment of bank loan, $33,300.
g.	Budgeted depreciation expense, $35,300.

$110,700.

$85,700.

$75,400.

$17,100.

$52,400.