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Production estimates for August are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000

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Production estimates for August are as follows: Estimated inventory (units), August 1 12,000 Desired inventory (units), August 31 9,000 Expected sales volume (units), August 75,000 For each unit produced, the direct materials requirements are as follows: Direct material A($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. The number of pounds of material A and B required for August production is: The number of pounds of materials A and B required for August production is: 216,000 lbs. of A; 72,000 lbs of B 216,000 lbs. of A; 36,000 lbs. of B 225,000 lbs. of A; 37, 500 lbs. of B 234,000 lbs. of A; 39,000 lbs. of B The total direct materials purchases (assuming no beginning or ending, inventory of material) of materials A and B requires for August production is: $1, 080,000 for A; $1, 296,000 for B $1, 080,000 for A; $648,000 for B $1, 125,000 for A; $675,000 for B $1, 170,000 for A; $702,000 for B The Warbler Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life" The company's Production Budget requires 353, 500 units of Simple jeans and 196,000 Fancy jeans to be manufactured. It is estimated that 2.5 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.75hours of direct labor hours for each pair of Fancy Life jeans. What is the total number of direct labor hours needed for both lines of jeans? 883, 750 direct labor hours 1, 618, 750 direct labor hours 735,000 direct labor hours 353, 500 direct labor hours Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000 and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections in September from accounts receivable are: $223, 600 $145, 600 $192,000 $168,000

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