THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 20 21.

Test Company projected the following unit sales for the next five quarters.

	Unit sales
Year 1, Quarter 1	1,000
Year 1, Quarter 2	1,200
Year 1, Quarter 3	1,500
Year 1, Quarter 4	2,000
Year 2, Quarter 1	1,000

The companys policy is to have 25% of the following quarters projected sales in ending finished goods inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy.

Each unit required 2 lbs. of direct materials. Projected direct materials cost is $5.00 per lb. The companys policy is to have 20% of the following quarters production needs in ending raw materials inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy.

Q1. Determine the total units to be produced in Year 1.

Note: Give your answer using commas. Do not include the word units.

Example: 12,345

Q2.

Determine the budgeted cost of direct materials purchases for Year 1, Quarter 1.

Note: Give your answer using dollar signs and commas but not decimal points (cents).

Example: $12,345

22.

Test Company projected the following sales for the first six months of the year.

	Total sales
January	$250,000
February	300,000
March	280,000
April	310,000
May	320,000
June	300,000

Of the total sales, 10% are cash sales, and the remaining sales are on credit. Credit sales are collected: 40% in the month of sale, 50% in the first month following the sale, 5% in the second month following the sale, and the remaining credit sales are uncollectible.

Determine total cash collections for March.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345