Question

1.) Morse company has a sales budge of 75,000 units in July, 85,000 units in August and 70,000 units in September. Morse requires ending finished goods inventories equal to 40 percent of the following months sales. How many units should be budgeted for production in August? Assume that the beginning finished goods inventory in August was equal to the budgeted level.

2.)David Enterprise manufactures a product that requires three gallons of chemical XU-20 per unit. The cost of XU-20 is $30.00 per gallon. Davis maintains an ending inventory of XU-20 equal to 70 percent of the following month's production usage. Planned production for Davis is as follows: 6,000 units in June, 5,500 units in July and 7,200 units in August. What would be the cost of XU-20 budgeted to be purchased in July? Assume that beginning inventory of XU-20 in July was equal to the budgeted level.

3.)Rocky's Industrial Tool supply Company forecasts the following Total sales figures for the next 4 months. April $300,000- May $360,000- June $400,000- July $420,000. Cash sales average 30 percent of total sales and credit sales represent 70 percent of total sales. Credit sales are collected 80 percent in the months following sale and 20 percent two months following sale. The total estimated cash received in July would be:

Answer 1