Emersyn Industries Emersyn Industries makes Elsa dolls. Emersyn likes to have 20% of the next month's sales needs in ending finished goods inventory. Each doll requires 1.5 yards of fabric that costs Emersyn $0.50 per yard. Emersyn requires that ending inventory of direct materials (fabric) on hand at the end of each month be equal to 40% of the following month's production needs. From past experience, the company has learned that 15% of the company's sales are for cash. The remaining sales are made on credit with 10% collected in the month of sale, 60% collected in the month following the sale, and 30% in the second month following the sale. The following data was taken from Emersyn's master budget: February March April May June Expected Production Units 6,940 8,200 10,400 8,240 9,660 Expected Sales Units 6,800 7,500 11,000 8,000 9,200 Expected Sales $ $68,000 $75,000 $110,000 $80,000 $92,000 15 5. How much cash does Emersyn expect to collect this quarter (April, May, and June) from all sales? a. $37,950 b. $ 63,750 c. $149,725 d. $265,935 6. What is the expected cost of fabric to be purchased for dolls in April? a. $6,816 b. $7,152 C. $14,304 d. $14,970 e. $7,485 7. How many yards of fabric should Emersyn plan on purchasing in March? a. 6,810 b. 13,620 c. 14,310 d. 14,970 e. 7,485 18