1.Super Solar Systems has forecast the following unit sales and production for the next year, by quarter.

Quarter	1st	2nd	3rd	4th
Production	75	80	70	50
Sales	60	70	75	60

Super Solar has the following beginning inventories.

Finished goods	50 units
Direct material A	15 kilograms
Direct material B	30 square metres

A finished unit requires one kilogram of material A and two square metres of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarters production needs. There are no work-in-process inventories.

What is the ending inventory for material B for quarter 1?

Select one:

a. 32 square metres

b. 150 square metres

c. none of these

d. 152 square metres

e. 16 square metres

2.

Mr Lewiss Co has projected sales for the next four months as follows.

	Units
July	70,000
August	90,000
September	55,000
October	65,000

Beginning inventory for July is 47,000 units.

Ending inventory for each month should be 30% of the next months sales.

How many units should the company produce in August?

Select one:

a. 97,000

b. 59,500

c. 90,000

d. none of these

e. 79,500

3.

Limelite Ltd, a retail store, projects sales for its first three months of operation as follows.

	January	February	March
Credit sales	$150,000	$188,000	$176,000
Cash sales	$60,000	$50,000	$55,000
Total sales	$210,000	$238,000	$231,000

Inventory on 1 January is $40,000. Subsequent beginning inventories should be 40% of that months cost of goods sold. Goods are priced at 140% of their cost.

50% of purchases are paid for in the month of purchase; the balance is paid in the following month.

It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale and the balance the third month. A 5% discount is given if payment is received in the month following sale.

What are the anticipated cash receipts for January?

Select one:

a. None of these

b. $135,000

c. $60,000

d. $150,000

e. $210,000