Q12:

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $236,000, $310,000, and $403,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale.

The cash collections in November are

a.$458,490

b.$382,075

c.$211,575

d.$100,750

Q13:

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections in November are

a.$389,750

b.$410,000

c.$490,000

d.$317,750

Q14:

Production estimates for July are as follows:

Estimated inventory (units), July 1	8,500
Desired inventory (units), July 31	10,500
Expected sales volume (units), July	76,000

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 total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is

a.$1,170,000 for A; $702,000 for B

b.$1,125,000 for A; $675,000 for B

c.$1,080,000 for A; $648,000 for B

d.$1,080,000 for A; $1,296,000 for B