DyanChrome estimates its sales at 12,000 units in the first quarter with an increase by 600 units each quarter over the year. It desires an ending inventory of finished goods equal to 20% of the next quarters sales. Each unit sells for $30. Forty percent of sales are on account, with the remainder being cash sales. Credit customers pay 90% during the quarter the sale was made and the balance during the following quarter.

16. How much are budgeted cash collections for the third quarter?

a. $395,280

b. $380,160

c. $356,400

d. $396,000

17. Production in units for the third quarter should be budgeted at

a. 13,080

b. 13,320

c. 15,760

d. 12,600