Q1 Munch Enterprises makes a small toy car that is voice activated.Projected sales for the next four months are

MonthPlanned Sales (Units)April5,500May6,500June4,500July5,600

The cars sell for $35 each.To produce each car requires $12.50 in direct materials and $6.00 in direct labour.Fixed overhead costs related to manufacturing the car are $10,000 per month, while variable overhead is 4.50 per car.Munch normally produces a month's supply of inventory to ensure that it will not fall short in case sales are unexpectedly high.At the end of March, for instance, the company will have inventory to cover April sales.

The production budget for cars for May (in units) is

Select one:

a.4,500

b.6,500

c.10,100

d.11,000

Q2 Munch Enterprises makes a small toy car that is voice activated.Projected sales for the next four months are

MonthPlanned Sales (Units)April5,500May6,500June4,500July5,600

The cars sell for $35 each.To produce each car requires $12.50 in direct materials and $6.00 in direct labour.Fixed overhead costs related to manufacturing the car are $10,000 per month, while variable overhead is 4.50 per car.Munch normally produces a month's supply of inventory to ensure that it will not fall short in case sales are unexpectedly high.At the end of March, for instance, the company will have inventory to cover April sales.

The total cost of goods sold for June is

Select one:

a.$128,800

b.$103,500

c.$157,500

d.$232,300

Q3 April Co. receives payment from customers for credit sales as follows:

• 30% in the month of sale
• 60% in the month following sale
• 8% in the second month following the sale
• 2% become bad debts and are never collected

The following sales are expected:

January: $100,000

February: $120,000

March: $110,000

How much will be received in March?

Select one:

a.$113,000

b.$30,000

c.$110,000

d.$96,000