Question : 78.Schrank Company trying to decide how many units of merchandise : 1236722

78.Schrank Company is trying to decide how many units of merchandise to order each month. The company’s policy is to have 20% of the next month’s sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must be purchased in September?   

A.14,000.

B.20,000.

C.22,000.

D.24,000.

E.28,000.

79.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 January 1 inventory for this material is 16,800 liters. What is the budgeted cost of materials purchases for April?    

A.$106,560.

B.$101,380.

C.$103,600.

D.$72,520.

E.$132,460.

80.When preparing the cash budget, all of the following should be considered except:    

A.Cash receipts from customers.

B.Cash payments for merchandise.

C.Depreciation expense.

D.Cash payments for income taxes.

E.Cash payments for capital expenditures.

81.Bioclean Co. sells a biodegradable cleaning product and has predicted the following sales for the first four months of the current year: 

A.2,000.

B.2,420.

C.2,020.

D.1,600.

E.2,820.

82.Garcia Manufacturing’s April sales forecast projects that 5,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be:    

A.5,000 units.

B.6,000 units.

C.5,300 units.

D.6,300 units.

E.Some other amount.

83.The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Budgeted purchases of Product A for the year would be:    

A.22,400 units.

B.20,400 units.

C.20,000 units.

D.19,500 units.

E.12,200 units.

84.The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Budgeted purchases of Product B for the year would be:   

A.24,500 units.

B.22,500 units.

C.16,500 units.

D.26,500 units.

E.20,500 units.

85.The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units. Total budgeted sales of both products for the year would be:   

A.$42,000.

B.$200,000.

C.$264,000.

D.$464,000.

E.$500,000.

86.If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be:   

A.$860

B.$1,100

C.$1,960

D.$9,160

E.$11,360

87.Coomb’s Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for the fourth quarter should be:   

A.$134,000.

B.$109,000.

C.$91,500.

D.$25,000.

E.$91,000.