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.
