PART 1:

The marketing and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 4,600 units for June. The variable marketing and administrative expense is $0.70 per unit. The budgeted fixed marketing and administrative expense is $94,200 per month, which includes depreciation of $5,150 per month. The remainder of the fixed marketing and administrative expense represents current cash flows. The cash disbursements for marketing and administrative expenses on the June marketing and administrative expense budget should be:

$89,050.

$3,220.

$92,270.

$97,420.

PART 2:

Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year.

		Jan		Feb		Mar		Apr
Cash sales	$	22,000	$	31,000	$	25,000	$	21,000
Credit sales	$	107,000	$	127,000	$	97,000	$	77,000

On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:

$111,600.

$108,000.

$98,000.

$133,000.

PART 3:

A company has the following annual budget data:

Beginning finished goods inventory		49,000	units
Sales		79,000	units
Ending finished goods inventory		39,000	units
Direct materials	$	19	per unit
Direct labor	$	29	per unit
Variable factory overhead	$	14	per unit
Selling costs	$	11	per unit
Fixed factory overhead	$	89,000

What are total budgeted production costs for the year?

$5,856,000.

$4,367,000.

$5,126,000.

$4,987,000.