8. Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	25,000	75,000
Raw material (grams)	55,000	45,000

Each unit of finished goods requires 2 grams of raw material.

The company plans to sell 720,000 units during the year, how much of the raw material should the company purchase during the year?

a. 1,585,000 grams

b. 1, 555,000 grams

c. 1,530,000 grams

d. 1, 540,000 grams

9. The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Sales at $600,000, all for cash.

Merchandise inventory on October 31 was $275,000.

The cash balance November 1 was $33,000.

Selling and administrative expenses are budgeted at $105,000 for November and are paid for in cash.

Budgeted depreciation for November is $55,000.

The planned merchandise inventory on November 30 is $305,000.

The cost of goods sold is 70% of the selling price.

All purchases are paid for in cash.

There is no interest expense or income tax expense.

The budgeted cash receipts for November are: a. $ 465,000 b. $ 600,000 c. $135,000 d. $655,000

10. LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.6 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.

The budgeted direct labor cost per unit of Product WZ would be:

a. $ 31.80 per unit

b. $ 15.00 per unit

c. $ 8.20 per unit

d. $ 54.oo per unit

11. LFM Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 3.9 hours of direct labor at the rate of $18.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 30,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 520 and 100 units, respectively. Budgeted direct labor costs for June would be: (Do not round intermediate calculations.)

a. $2,076,516

b. $2,114,016

c. $2,095,266

d. $532,500