Question : 35.               Xenon Corporation budgeted sales of its product : 1369923

 

 

35.               Xenon Corporation budgeted sales of its product during the next fiscal year at 200,000 units, with a selling price of $20 per unit. Sales commissions are 6% of sales and other variable selling and administrative costs are 15% of sales. Fixed selling and administrative costs are estimated at $630,000. The budgeted selling and administrative costs for the next fiscal year are:

A)$ 840,000

B)$1,230,000

C)$860,000

D)$1,470,000

 

36.              Gove Company has an accounts receivable balance of $357,000 at the beginning of the year. Credit sales for the year are projected at $975,000. Management estimates that 95% of the beginning accounts receivable plus 75% of the credit sales will be collected during the period. What is the projected balance of the ending accounts receivable?

A)$1,332,000

B)$261,600

C)$1,070,400

D)$243,750

 

 

37.              The Piante Company has an accounts receivable balance of $256,000 at the beginning of the year. Credit sales for the year are projected at $923,000. Management estimates that 98% of the beginning accounts receivable plus 82% of the credit sales will be collected during the period. The projected balance of accounts receivable at year-end equal to:

A)$161,020

B)$166,140

C)$171,260

D)$256,000

 

Use the following to answer questions 38-40:

 

Minuteman Company’s sales were budgeted for the first six months of its fiscal year as follows:

 

April

$340,000

 

July

$390,000

May

420,000

 

August

360,000

June

550,000

 

September

480,000

 

 

 

 

 

All sales are on credit and management estimates that 55% will be collected in the month following the sale, with the remaining 45% collected the second month following the sale.

 

38.              Cash collections during June are estimated at:

A)$376,000

B)$384,000

C)$491,500

D)$550,000

 

 

39.              Cash collections during August are estimated at:

A)$360,000

B)$373,500

C)$462,000

D)$517,000

 

 

40.  What is the balance in Accounts Receivable at the beginning of June before June sales

are recorded?

A)  $189,000

B)  $420,000

C)  $573,000

D)  $231,000

 

Use the following to answer questions 41-42:

 

Ness Company’s sales were budgeted for the first six months of its fiscal year as follows:

 

January

$470,000

 

April

$530,000

February

420,000

 

May

660,000

March

550,000

 

June

480,000

 

 

 

 

 

Sales are 40% cash and 60% credit. Management estimates that two-thirds of credit sales will be collected in the month of sale with the balance collected the following month.

 

 

41.              Cash collections during March are estimated at:

A)$608,000

B)$524,260

C)$550,000

D)$692,000

 

 

42              Cash collections during May are estimated at:

A)$528,000

B)$660,000

C)$740,000

D)$634,260

 

 

Use the following to answer questions 43-44:

 

Redcoat Company’s unit sales were budgeted for the first six months of its fiscal year as follows:

 

January

250,000

 

April

315,000

February

295,000

 

May

280,000

March

330,000

 

June

345,000

 

 

 

 

 

Management wants to maintain an ending inventory equal to 15% of the next month’s sales.

 

 

43.              The unit production requirements for February are:

A)245,500

B)295,000

C)300,250

D)344,500

 

 

44.              The unit production requirements for May are:

A)280,000

B)289,750

C)331,750

D)373,750

 

 

Use the following to answer questions 45-46:

 

Trego Company’s unit sales were budgeted for the first six months of its fiscal year as follows:

 

March

255,000

 

June

250,000

April

290,000

 

July

225,000

May

295,000

 

August

250,000

 

 

 

 

 

Management wants to maintain an ending inventory equal to 8% of the next month’s sales.