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Chapter9 1) Jordan Company produces and sells basketballs. to guard ageinst out of stock situations, the company requires that 20% of the next month's sales be on hand Budgeted sales of basketballs over the next three months are at the end of each month. October 80,000 November 120,000 December 100,000 Budgeted sales in units Budgeted production for November would be: a. 140,000 units b. 124,000 units c. 116,000 units d. 100,000 units 2) The LaPann Company has obtained the following sales forecast data July $80,000 $70,000 $50,000 $60,000 August September October Cash Sales Credit Sales $240,000 $220,000 $180,000 $200,000 The regular pattern of collection of credit sales is 30% in the month of sale and 70% in the month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on September 30th is a. $126,000 b. $154,000 c. $161,000 d. $186,000 3) Sander Co. has budgeted sales in units for the next four months as follows July August September October 7,000 units 7,200 units 8,000 units 7,900 units Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units. The company needs to prepare a production budget for the next four months. The beginning inventory for September should ber a. 1,080 units b. 1,200 units c. 1,185 units d. 1,170 units