ACCT 1340 FINAL 8-10, 12-13
|1.||Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales at Fab (in units) for the next three months are as follows:
Fab likes to maintain a finished goods inventory equal to 30% of the next month’s estimated sales. How many mugs should Fab plan on producing during the month of November?
|2.||The following are budgeted data:
One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month’s production needs. Purchases of raw materials for February would be budgeted to be:
|Richards Corporation has the following budgeted sales for the first half of next year:
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales.
|3.||What is the budgeted accounts receivable balance on May 30?
|Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow:
· Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January.
|4.||December cash disbursements for merchandise purchases would be:
|Noel Enterprises has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month’s sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.