Silver Corp. has budgeted production by units for next year as follows:

Month January February March

Production in units 8,000 10,000 12,000

Five pounds of raw materials are required for each unit produced. Beginning raw materials at the start of year total 8,000 pounds. The raw materials inventory at the end of each month should equal 10% of the next months production needs. Budgeted purchases of raw materials in February would be:

		a. 49,000 pounds
		b. 50,000 pounds
		c. 51,000 pounds
		d. 60,000 pounds

2.

1. XYZs sales are all credit sales. The following information is available with respect to sales on account:

   20% of credit sales are collected in the month of sales

   50% of credit sales are collected in the month following the month of sales

   30% of credit sales are collected in the second month following the month of sales

   Budgeted Sales are as follows:

   January $80,000

   February $100,000

   March $150,000

   Cash collections in March are budgeted to be:

   		a. $45,000
   		b. $95,000
   		c. $104,000
   		d. $111,000