QUESTION 5 Aloan Co. provides the following sales forecast for the next two months: January, 3,000 units; February, 4,200 units. The company wants to end each month with ending finished goods inventory equal to 10% of the next month's sales. Finished goods inventory on December 31 is 300 units. The budgeted production units for January are: A. 3,120 units. OOOO B. 2,880 units. C. 3,720 units. D. 3,420 units. QUESTION 6 Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April? A. 39,200 liters. B. 71,600 liters. C. 57,600 liters. OD. 54,800 liters. QUESTION 7 Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: A. Repay $2,500. B. Borrow $4,500. C. Repay $7,500. OD. Borrow $2,500