Exercise 4 Multiple Choice: Short Problems Name: Section: Score: Instruction: Encircle the letter that corresponds to your answer. 1. Mar T. Nillo has budgeted purchases of 18,000 units. The budgeted beginning inventory was 12,500 Financial Planning and B units and the budgeted ending inventory was 15,000 units. The budgets sales were a. 30,500 units b. 15,000 units c. 15,500 units d. None of the above 163 2. Camia's Widgets plans to sell 22,000 widgets during May; 19,000 units in June; and 20,000 units during July. Camia keeps 10% of the next month's sales as ending inventory. How many units should Camia produce for June? a. 18,900 b. 21,000 C. 19,100 d. 19,000 3. Josefa Falayfay finds that 40% of a month's sales are for cash. The payments on accounts receivable are 65 percent in the month of sale and 35 percent in the month following sale. The budgeted sales for January are P100,000; P140,000 for February, and P120,000 for March. What are the total cash receipts budgeted for March? P76,200 b. P111,200 C. P124,200 d. None of the above 4. On January 1, 2020, J. Kho, Inc. has a beginning inventory of 3,000 surfboards. J. Kho estimates it will sell 14,000 units during the first quarter of 2020, with a 10% increase in sales each quarter. J. Kho's policy is to maintain an ending inventory equal to 20% of the next quarter's sales. Each surfboard costs P140 and is sold for P200. How many units should J. Kho produce during the first quarter of 2019? a. 14,080 b. 14,280 C. 16,800 d. 14,200S. Each production worker can finish four wooden chairs per hour. For the mormon of June, Chai Inc. has forecasted sales of 100,000 chairs. The beginning inventory was bono chairs, and Fly desired ending inventory is 2,500 chairs. How many hours of direct labor must be budget , the meet production needs? a. 25,375 b. 25,000 FINANCIAL MANAGEMENT | Part ! C. 26,500 d. 24,625 6. Glosm Company showed the following on its direct materials budget for June: 50,000 Units to be produced 4,000 Total kilos needed for production 5,000 164 Total kilos of materials to be purchased The materials cost P2 per kilos. How much is the cost of direct materials per unit? a. P0. 16 b. P25 C. P20 d. P0.20 7. The direct materials budget shows: Desired ending direct materials 2,000 kilos Materials purchased 51,400 kilos Beginning inventory on hand 1,200 kilos How much is the total direct materials needed for production? 50,600 kilos b. 52,600 kilos c. 52,200 kilos d. 51,400 kilos 8. The following credit sales are budgeted by Brownie: January P124,000 February P120,000 March P135,000 April P140,000 May P142,000 The company's past experience indicates that 50% of the accounts receivable are collected in the month of sale, 30% in the month following the sale, and 18% in the second month following the for March? sale. Two percent (2%) are uncollectible. How much does the company anticipate as cash receipts . P132,300 b. P125,820 C. P135,060 d. P122,300