81. Production and sales estimates for March for the Finneaty Co. are as follows:
Estimated inventory (units), March 1
17,500
Desired inventory (unit), March 31
19,300
Expected sales volume (units):
Area M
6,000
Area L
7,000
Area O
9,000
Unit sales price
$15
The number of units expected to be manufactured in March is: A. 22,000B. 1,800C. 23,800D. 20,200
82. Production and sales estimates for May for the Finneaty Co. are as follows:
Estimated inventory (units), March 1
17,500
Desired inventory (unit), March 31
19,300
Expected sales volume (units):
Area W
4,200
Area X
7,000
Area Y
9,000
Unit sales price
$15
The number of units expected to be sold in May is: A. 22,000B. 1,800C. 23,800D. 20,200
83. Production and sales estimates for June are as follows:
Estimated inventory (units), June 1
18,000
Desired inventory (units), June 30
19,000
Expected sales volume (units):
Area X
3,000
Area Y
4,000
Area Z
5,500
Unit sales price
$20
The number of units expected to be manufactured in June is: A. 10,000B. 11,500C. 13,500D. 12,500
84. Production and sales estimates for June are as follows:
Estimated inventory (units), June 1
8,000
Desired inventory (units), June 30
9,000
Expected sales volume (units):
Area X
3,000
Area Y
4,000
Area Z
5,500
Unit sales price
$20
The budgeted total sales for June is: A. $200,000B. $230,000C. $270,000D. $250,000
85. If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is: A. 7,000B. 6,900C. 7,100D. 7,200
86. Production estimates for August are as follows:
Estimated inventory (units), August 1
12,000
Desired inventory (units), August 31
9,000
Expected sales volume (units), August
75,000
For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per lb.)
3 lbs.
Direct material B ($18 per lb.)
1/2 lb.
The number of pounds of materials A and B required for August production is: A. 216,000 lbs. of A; 72,000 lbs. of BB. 216,000 lbs. of A; 36,000 lbs. of BC. 225,000 lbs. of A; 37,500 lbs. of BD. 234,000 lbs. of A; 39,000 lbs. of B
87. Production estimates for August are as follows:
Estimated inventory (units), August 1
12,000
Desired inventory (units), August 31
9,000
Expected sales volume (units), August
75,000
For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per lb.)
3 lbs.
Direct material B ($18 per lb.)
1/2 lb.
The total direct materials purchases (assuming no beginning or ending inventory of material) of materials A and B required for August production is: A. $1,080,000 for A; $1,296,000 for BB. $1,080,000 for A; $648,000 for BC. $1,125,000 for A; $675,000 for BD. $1,170,000 for A; $702,000 for B
88. Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May.
Estimated inventory (units), May 1
10,000
Desired inventory (units), May 31
15,000
Expected sales volume (units):
South region
30,000
West region
40,000
North region
20,000
Unit sales price
$10
A. 85,000B. 90,000C. 95,000D. 105,000
89. Which of the following budgets provides the starting point for the preparation of the direct labor cost budget? A. Direct materials purchases budgetB. Cash budgetC. Production budgetD. Sales budget
90. Production and sales estimates for April are as follows:
Estimated inventory (units), April
19,000
Desired inventory (units), April 30
18,000
Expected sales volume (units):
Area A
3,500
Area B
4,750
Area C
4,250
Unit sales price
$20
The number of units expected to be manufactured in April is: A. 11,500B. 10,000C. 12,500D. 13,500
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