Part 1

Budgeted credit sales in Allen Company over the next four months are given below:

September October November December January February

Credit sales $ 75,000 $120,000 $135,000 $ 90,000 $100,000 $120,000 Collections for credit sales follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, what were cash collections for December?

Part 2

Prestwich Company has budgeted production for next year as follows:

First Second Third Fourth .

Production in units 60,000 80,000 90,000 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. What are budgeted purchases of material A for the second quarter in pounds?

Part 3

Bertucci Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below:

	TC		GL			NG
Selling price per unit	$	494.40		$	449.43		$	469.68
Variable cost per unit	$	395.20		$	320.21		$	373.92
Minutes on the constraint		8.00			7.10			7.60

Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized.

________ the first product to be produced

_________ the second product to be produced

_________ the third product to be produced

Part 4

Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, what should Walsh Company's production of Product W for the month of April?