Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.

	Beginning Inventory	Ending Inventory
Raw material*	56,000	66,000
Finished goods	96,000	66,000

*Three pounds of raw material are needed to produce each unit of finished product.

If Paradise Corporation plans to sell 560,000 units during next year, the number of units it would have to manufacture during the year would be:

504,000 units

560,000 units

590,000 units

530,000 units

2-

Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.75 direct labor-hours. The direct labor rate is $10.00 per direct labor-hour. The production budget calls for producing 7,100 units in March and 6,900 units in April. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

$109,600.00

$120,750.00

$105,000.00

$106,550.00

3-

Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $51,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total $130,000. The desired ending cash balance is $72,000. To attain its desired ending cash balance for May, the company needs to borrow:

$128,000

$0

$72,000

$16,000

4-

Richards Corporation has the following budgeted sales for the first half of next year:

	Cash Sales	Credit Sales
January	$80,000	$180,000
February	$85,000	$200,000
March	$36,000	$160,000
April	$41,000	$136,000
May	$51,000	$230,000
June	$110,000	$260,000

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:

55% in month of sales

30% in month of following sales

15.0% in second month following sales

The accounts receivable balance on January 1 is $68,000. Of this amount, $54,000 represents uncollected December sales and $14,000 represents uncollected November sales.

The total cash collected during January would be:

$300,000

$241,000

$120,000

$229,000

5-

Richards Corporation has the following budgeted sales for the first half of next year:

	Cash Sales	Credit Sales
January	$70,000	$170,000
February	$75,000	$190,000
March	$54,000	$150,000
April	$59,000	$154,000
May	$69,000	$220,000
June	$100,000	$440,000

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:

40% in month of sales

30% in month of following sales

30% in second month following sales

The accounts receivable balance on January 1 is $84,000. Of this amount, $48,000 represents uncollected December sales and $36,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 30?

$178,200

$48,000

$226,200

$132,000