7 A Below is budgeted production and sales information for Flushing Company for the month of December Product XXX Product ZZZ Estimated beginning inventory 29,200 units 18,100 units Desired ending inventory 35,600 units 14,100 units Region I, anticipated sales 341,000 units 262,000 units Region II, anticipated sales 188,000 units 143,000 units The unit selling price for product XXX is $4 and for product ZZZ is $15 Budgeted sales for the month are a $9,555,000 b $14,010,000 c $3,736,000 d $8,191,000 B, Finch Company began its operations on March 31 of the current year Finch has the following projected costs April May June Manufacturing costs (1) $155,800 $198,200 $211,100 Insurance expense (2) 910 910 910 Depreciation expense 1,840 1,840 1,840 Property tax expense (3) 470 470 470 (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 $910 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 $148,650 b $38,950 c $226,550 d $187,600 7 C Woodpecker Co has $307,000 in accounts receivable on January 1 Budgeted sales for January are $938,000 Woodpecker Co expects to sell 20 of its merchandise for cash Of the remaining 80 of sales on account, 75 are expected to be collected in the month of sale and the remainder the following month The January cash collections from sales are a $634,440 b $1,364,400 c $845,920 d $1,057,400

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7. A. Below is budgeted production and sales information for Flushing Company for the month of December: Product XXX Product ZZZ Estimated beginning inventory 29,200

7. A.

Below is budgeted production and sales information for Flushing Company for the month of December:

	Product XXX	Product ZZZ
Estimated beginning inventory	29,200 units	18,100 units
Desired ending inventory	35,600 units	14,100 units
Region I, anticipated sales	341,000 units	262,000 units
Region II, anticipated sales	188,000 units	143,000 units

The unit selling price for product XXX is $4 and for product ZZZ is $15. Budgeted sales for the month are

a. $9,555,000

b. $14,010,000

c. $3,736,000

d. $8,191,000

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

	April	May	June
Manufacturing costs (1)	$155,800	$198,200	$211,100
Insurance expense (2)	910	910	910
Depreciation expense	1,840	1,840	1,840
Property tax expense (3)	470	470	470

(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 $910 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. $148,650

b. $38,950

c. $226,550

d. $187,600

7. C.

Woodpecker Co. has $307,000 in accounts receivable on January 1. Budgeted sales for January are $938,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a. $634,440

b. $1,364,400

c. $845,920

d. $1,057,400