2)Production and sales estimates for May for the Cardinal Co. are as follows:

Estimated inventory (units), May 1	18,800
Desired inventory (units), May 31	19,800
Expected sales volume (units):
Area W	6,300
Area X	8,800
Area Y	7,200
Unit sales price	$12.00

The number of units expected to be sold in May is

a.20,070

b.22,300

c.13,500

d.26,760

3)Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$155,000	$194,000	$215,000
Insurance expense (2)	840	840	840
Depreciation expense	1,930	1,930	1,930
Property tax expense (3)	430	430	430

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. (2) Insurance expense is $840 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are

a.$258,250

b.$161,250

c.$209,750

d.$48,500

4)Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$156,800	$195,200	$217,600
Insurance expense (2)	1,000	1,000	1,000
Depreciation expense	2,000	2,000	2,000
Property tax expense (3)	500	500	500

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. (2) Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are

a.$214,000

b.$212,000

c.$215,500

d.$188,800

5)Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$156,800	$195,200	$217,600
Insurance expense (2)	1,000	1,000	1,000
Depreciation expense	2,000	2,000	2,000
Property tax expense (3)	500	500	500

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. (2) Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of May are

a.$149,900

b.$185,600

c.$189,100

d.$187,600

6)Next years sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Budgeted production of Product B for the year would be

a.23,200 units

b.22,500 units

c.24,500 units

d.26,500 units

7)Next years sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Total budgeted sales of both products for the year would be

a.$264,000

b.$464,000

c.$42,000

d.$200,000