International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.

The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:

French Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.80

-

Shipping.

1.20

-

Advertising

0.30

15,000

Executive Salaries

-

35,000

Depreciation on Office Equipment

-

12,000

Other

0.35

20,000

Newcastle Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.90

-

Shipping.

0.80

-

Advertising

0.60

5,000

Executive Salaries

-

40,000

Depreciation on Office Equipment

-

18,000

Other

0.80

5,000

All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division budgeted to sell 25,000 units in July, then the total budgeted selling and administrative expenses per unit sold for July is:

(Round your answer to two decimal places.)

5.82.

4.28.

3.22.

4.75.

The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.

The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:

French Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.80

-

Shipping.

1.20

-

Advertising

0.30

15,000

Executive Salaries

-

35,000

Depreciation on Office Equipment

-

12,000

Other

0.35

20,000

Newcastle Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.90

-

Shipping.

0.80

-

Advertising

0.60

5,000

Executive Salaries

-

40,000

Depreciation on Office Equipment

-

18,000

Other

0.80

5,000

All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the budgeted cash disbursements for selling and administrative expenses for November total 154,180, how many units does the French Division plan to sell in November? (rounded to the nearest whole unit)

58,181 units

31,766 units

28,333 units

25,000 units

The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.

The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:

French Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.80

-

Shipping.

1.20

-

Advertising

0.30

15,000

Executive Salaries

-

35,000

Depreciation on Office Equipment

-

12,000

Other

0.35

20,000

Newcastle Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.90

-

Shipping.

0.80

-

Advertising

0.60

5,000

Executive Salaries

-

40,000

Depreciation on Office Equipment

-

18,000

Other

0.80

5,000

All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division budgeted to sell 27,000 units in July, then the total budgeted selling and administrative expenses per unit sold for July is:

(Round your answer to two decimal places.)

5.65.

5.28.

5.23.

5.62.

The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.

The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:

French Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.80

-

Shipping.

1.20

-

Advertising

0.30

15,000

Executive Salaries

-

35,000

Depreciation on Office Equipment

-

12,000

Other

0.35

20,000

Newcastle Division Cost Structure

Variable Cost

Monthly

Per Unit Sold

Fixed Cost

Sales Commissions

0.90

-

Shipping.

0.80

-

Advertising

0.60

5,000

Executive Salaries

-

40,000

Depreciation on Office Equipment

-

18,000

Other

0.80

5,000

All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the budgeted disbursements (including depreciation) for selling and administrative expenses for November total 154,180, how many units does the French Division plan to sell in November? (rounded to the nearest whole unit)

18,123 units

35,126 units

27,238 units

10,000 units

Kafusi Company has the following budgeted sales:

April

May

June

July

Credit Sales

320,000

300,000

350,000

400,000

Cash Sales

70,000

80,000

90,000

70,000

The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted cash receipts for July would be:

400,000.

430,000.

435,000.

390,000.

The Kafusi Company has the following budgeted sales:

April

May

June

July

Credit Sales

320,000

300,000

350,000

400,000

Cash Sales

70,000

80,000

90,000

70,000

The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on May 31 would be:

210,000

212,000

180,000

242,000

Cash Sales

Credit Sales

July.

50,000

150,000

August

55,000

170,000

September

45,000

130,000

October

50,000

145,000

November

60,000

200,000

December.

80,000

350,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

60% in month of sale

30% in month following sale

10% in second month following sale

Assume that the accounts receivable balance on July 1 was 75,000. Of this amount, 60,000 represented uncollected June sales and 15,000 represented uncollected May sales. Given these data, the total cash collected during July would be:

150,000.

235,000.

215,000.

200,000

Cash Sales

Credit Sales

July.

50,000

150,000

August

55,000

170,000

September

45,000

130,000

October

50,000

145,000

November

60,000

200,000

December.

80,000

350,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

60% in month of sale

30% in month following sale

10% in second month following sale

What is the budgeted accounts receivable balance on December 1?

80,000

140,000

94,500

131,300

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

* Sales at 450,000, all for cash

* Merchandise inventory on October 31 was 200,000.

* The cash balance November 1 was 18,000.

* Selling and administrative expenses are budgeted at 60,000 for November and are paid for in cash.

* Budgeted depreciation for November is 25,000.

* The planned merchandise inventory on November 31 is 230,000.

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

* All purchases are paid for in cash.

The budgeted cash receipts for November are:

315,000.

450,000.

135,000.

475,000.

Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for 24 and has a unit variable cost of 18. The company has budgeted the following data for November:

* Sales of 1,152,000, all in cash.

* A cash balance on November 1 of 48,000.

* Cash disbursements (other than interest) during November of 1,160,000.

* A minimum cash balance on November 30 of 60,000.

If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of 1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.

The amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is:

20,000.

21,000.

37,000.

38,000.

The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for 24 and has a unit variable cost of 18. The company has budgeted the following data for November:

* Sales of 1,152,000, all in cash.

* A cash balance on November 1 of 48,000.

* Cash disbursements (other than interest) during November of 1,160,000.

* A minimum cash balance on November 30 of 60,000.

If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of 1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.

The amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is:

20,000.

21,000.

37,000.

38,000.

Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year:

Budgeted production

Quarter 1

45,000 units

Quarter 2

38,000 units

Quarter 3

34,000 units

Quarter 4

48,000 units

Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter's direct material requirements. Budgeted direct materials purchases for the third quarter would be:

114,600 pounds.

89,400 pounds.

38,200 pounds.

29,800 pounds.

Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:

Super Drive, Inc.

Statement of Financial Position

For the year ended November 30

Assets:

Cash

52,000

Accounts receivable

150,000

Inventory

315,000

Property, plant, and equipment

1,000,000

Total assets

1,517,000

Liabilities and stockholders' equity:

Accounts payable

175,000

Common stock

900,000

Retained earnings

442,000

Total liabilities and stockholders' equity

1,517,000

Additional information regarding Super Drive's operations appear below:

* Sales are budgeted at 520,000 for December and 500,000 for the upcoming January.

* Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts.

* 80% of the disk drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.

* Payment for components purchased is made in the month following the purchase.

* Assume that the cost of goods sold is 80% of sales.

The balance in accounts payable on the budgeted balance sheet for December 31 should be:

161,280.

326,400.

165,120.

403,200.