5. Brilliant Professor Mullen determines that 27,000 pounds (DM-RP) of direct materials are needed for production in July. There are 1,600 pounds of direct materials (BI) on hand at July 1 and the desired Ending Inventory (ET) is 1,400 pounds. If the cost per pound (lb) of direct materials is $3, what is the budgeted total cost of direct materials purchases (DM-Purchases SS)? A) $79,200. B) $80,400. C) $81,600. D) $82,800. 16. Lao Shu Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units (RP) are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May? A) $579,600. B) $590,400. C) $601,200. D) S648,000. 17. Genius Professor Mullen Company has the foll and March S 100,000, 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts (CR)during March are: A) $112,000 B) $106,000. C) $105,000. D) S100,000. Lao Shu Mouse Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters (75%) of all purchases are paid for in the month of purchase, and the other one- fourth (25%) are paid for in the month follow ing the month of purchase. How much will August's cash 18. disbursements (CDJ) for materials purchases be? A) $67,500 B) $78,750 C) $101.250 D) $105,000 19. Lao Xiao Miao Company has the following budgeted sales: July $100,000, August $150,000, and September S 125,000 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts (CR)during September are A) S140,000 B) $132,500. C) $131.250. D) $125,000. Page 4 20. Xiao Miao Company's direct materials budget shows total cost of direct materials purchases for April $300,000, May $360,000 and June $420,000. Cash payments are 60% in the month of purchase and 40 in the following month. The budgeted cash payments (CDJ) for June are: A) $396,000. B) $384,000. C) $360,000. D) $312,000. 21. The following credit sales are budgeted by The Brilliant&Genius Professor Mullen Company: anuary February April March The company's past experience indicates that 70% ofthe accounts receivable are collected in the month of S136,000 200,000 280,000 240,000 sale 20% in the month following, and 8% in the second month following the sale, and 2% UC The anticipated cash inflow (CRJ) for the month of April is A) $246,880. B) $224,000 C) $240,000. D) $235,200 22. The Most Brilliant Professor Mullen Company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sales the remainder (5%) is never collected. Budgeted credit sales were: January February March The cash inflow (CRJ) in the month of March is expected to be A) $271,200. B) $205,200. C) $216,000. D) $259,200. S240,000 144,000 360,000 23. Which one of the following items would never appear on Professor Mullen's Cash budget? A) Office salaries expense B) Interet expense C) Depreciation expense D) Travel expense Lao Shu Bruce Company's direct materials budget shows total cost of direct materials purchases for January $125,000, February S 150,000 and March $175,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments (CDJ) for March are A) $165,000. B) $160,000. C) $150,000. D) $130,000. 24. Page 5 25. During September, the capital expenditure budget indicates a $280,000 purchase of equipment. The September cash balance (Net Cash) from Operations is budgeted to be $40,000 before considering the capital expenditure purchase. The company wants to maintain a minimum cash balance (EI) of $20,000 What is the minimum cash loan that must be planned to be borrowed from the bank during September? A) $220,000 B) $240,000 C) $260,000 D) $300,000 26. On January 1, Old Lao Shu Bruce Company has a beginning cash balance of $84,000. During the year, the company expects cash disbursements of $680,000 and cash receipts of $580,000. If Old Lao Shu Bruce Company requires an ending cash balance of $80,000, then this Old Lao Shu must borrow A) $64,000. B) $80,000. C) $96,000. D) $184,000. On January 1, Xiao Miao Inc has a beginning cash balance of $21,000. During the year, the company expects cash disbursements of $170,000 and cash receipts of $145,000. If Xiao Miao Ine requires an ending cash balance of $20,000, the company must borrow 27. A) $16,000. B) $20,000. C) $24,000. D) $46,000. 28. The following information was taken from the Most Brilliant Professor Mullen Company's cash budget for the month of July: Beginning cash balance (BI) Cash receipts (CRJ) Cash disbursements (CDJ) If the company has a policy of maintaining a minimum end of the month cash balance of $250,000, the amount the company would have to borrow is A) $100,000. B) $50,000. C) $150,000. D) $60,000. $300,000 190,000 340,000