Kyoto, Inc. predicts the following sales in units for the coming four months:

April May June July Sales in units 265 295 325 275

Although each month's ending inventory of finished units should be 55% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 45% of the following month's production needs.

16. Kyotos budgeted production for May is: A. 225 units B. 312 units C. 275 units

D. 280 units E. 292 units

17. Kyotos budgeted production for the second quarter is: A. 852 units B. 864units C. 492 units

D. 449 units E. 878 units

18. If each unit of Kyotos product takes two hours to produce and the labor rate is expected to be $10 per hour, what is the budgeted labor cost for May? A. $4,525 B. $4,240

C. $6,230 D. $5,600 E. $5,840

19. If each unit of Kyotos product takes two hours to produce and the labor rate is expected to be $10 per hour, what is the budgeted labor cost for the second quarter? A. $16,400 B. $17,280

C. $17,800 D. $8,960 E. $17,040

20. The budgeted purchases of pounds of raw material B during May should be: A. 1,450 pounds B. 1,525 pounds C. 1,512 pounds

D. 293 pounds E. 864 pounds