Question : 118.Charm Enterprises’ production budget shows the following units to be : 1258644

118.Charm Enterprises’ production budget shows the following units to be produced for the coming three months: 

AprilMayJune

Units to be produced2,5602,8802,760

A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month’s ending Raw Materials inventory should be 35% of the following month’s production needs. The materials to be purchased during May should be:   A. 11,352 oz.

B. 11,520 oz.

C. 7,448 oz.

D. 15,384 oz.

E. 7,616 oz.

119.Fortune Company’s direct materials budget shows the following cost of materials to be purchased for the coming three months: 

JanuaryFebruaryMarch

Material purchases$12,04014,15010,970

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The budgeted cash payments for materials in January are:    

A. $6,500.

B. $9,270.

C. $12,520.

D. $13,095.

E. $18,540.

120.Memphis Company’s May sales budget calls for sales of $900,000. The store expects to begin May with $50,000 of inventory and to end the month with $55,000 of inventory. Gross margin is typically 45% of sales. Compute the budgeted cost of merchandise purchases for May.    

A. $550,000.

B. $500,000.

C. $495,000.

D. $460,000.

E. $490,000.

121.Fortune Company’s direct materials budget shows the following cost of materials to be purchased for the coming three months: 

JanuaryFebruaryMarch

Material purchases$12,04014,15010,970

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The expected January 30 Accounts Payable balance is:    

A. $6,500.

B. $7,075.

C. $12,040.

D. $6,020

E. $9,270.

122.Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales for May.    

A. $561,500.

B. $652,500.

C. $817,500.

D. $592,500.

E. $890,000.

30% of May credit sales (30% * 75% * $900,000)202,500

65% of April credit sales (65% * 75% * $800,000) 390,000

123.Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales for May.    

A. $561,500.

B. $652,500.

C. $817,500.

D. $592,500.

E. $890,000.

124.Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales for June.    

A. $561,500.

B. $652,500.

C. $817,500.

D. $592,500.

E. $890,000.

30% of June credit sales (30% * 75% * $950,000)213,750

65% of May credit sales (65% * 75% * $900,000)     438,750

125.Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales for June.    

A. $561,500.

B. $652,500.

C. $817,500.

D. $592,500.

E. $890,000.

126.Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are collected in the second month. Compute the amount of accounts receivable reported on the company’s budgeted balance sheet for June 30.    

A. $561,500.

B. $712,500.

C. $463,125.

D. $496,875.

E. $617,500.

127.Ratchet Manufacturing’s August sales budget calls for sales of 8,000 units. Each month’s sales are expected to exceed the prior month’s results by 5%. The product selling price is $25 per unit. The expected total sales dollars for September’s sales budget are:    

A. $200,000.

B. $190,000.

C. $210,000.

D. $220,000.

E. $8,400.