Q7: Seven Inc. anticipates sales in February to be $270,000. Inventory is $94,500 at the start of February, and is expected to increase by $8,500 by the end of the month. Mark-up on costs is 200%. What is the purchase amount (in dollars) for February?

Select one:

a. $143,500

b. $116,500

c. $ 98,500

d. Neither of the above

Q8: The Sun Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this item in 2008. The beginning finished goods inventory contains 20,000 units. The target for each year's ending inventory is 10,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the materials usage (in feet) for 2008?

Select one:

a. 325,000

b. 336,250

c. 375,000

d. None of the above

Q10: Di & Co. makes all of its sales on credit. Budgeted sales (in units) are 10,000 in July, 11,000 in August, 12,000 in September, and 13,000 in October. Selling Price is $15 per unit. Purchases are equal to 70% of projected sales dollars for the following month. Purchases are paid in full in the month after purchase. Selling and distribution expenses are expected to be $5,000 per month and are paid fully each month. In addition, depreciation is $3,500 each month. All numbers are GST-inclusive, and tax is reported on a cash basis. What is the input-tax credit for September?

Select one:

a. $11,591

b. $11,909

c. $12,227

d. $13,100

e. None of the above