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Lewis, Inc. sells candles. The estimated numbers of candle sales for the last three months of 2009 are as follows: Finished goods inventory at September 30 was 5,000 units. Ending finished goods inventory is projected to be 20% of next month's sales. Lewis expects to sell each candle for $5. January 2010 sales are projected at 13,000. What is the number of expected units that should be produced in December 2009? a. 16,600 b. 15,400 c. 16,000 d. 29,000 status: not answered () correct: b your answer: 2 Puerto Mont Company has the following budgeted data for a merchandising firm: Assuming there was inventory on hand of $70,000 (at cost) on January 1, the purchases for January (at cost) would be: a. b. $250,000. c. $263,000. d. $110,000. status: not answered () correct: c your answer: 3 Caracas Company, a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: All of the accounts payable are for inventory purchases, and all inventory is purchased on account. What are the estimated cash disbursements for inventories for the budget period? a. b. $1,600,000 c. $1,900,000 d. $1,760,000 status: not answered () correct: d your answer: 4 Chegedu Company will open a new store on January 1. Based on experience from its other retail outlets, Chegedu is making the following sales projections: Chegedu estimates that 70% of the credit sales will be collected in the month following the month of the sale, with the balance collected in the second month following the sale. Based on these data, the budgeted cash receipts for April will be: a. b. $57,000. c. $114,000. d. $97,000. status: not answered () correct: d your answer: 5 Chegedu Company will open a new store on January 1. Based on experience from its other retail outlets, Chegedu is making the following sales projections: Chegedu estimates that 70% of the credit sales will be collected in the month following the month of the sale, with the balance collected in the second month following the sale. Based on these data, the March 31 balance in accounts receivable will be: a. b. $60,000. c. $95,000. d. $75,000. status: not answered () correct: d your answer: 6 Puerto Mont Company has the following budgeted data for a merchandising firm: Assume that all purchases are paid for in the month following the purchase. The cash disbursements for purchases that would appear in the April cash budget would be: a. b. $157,500. c. $240,000. d. $217,500. status: not answered () correct: d your answer: 7 The Quito Company budgeted its activity for September according to the following information: Sales are budgeted at $392,000, and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on August 31, and the planned merchandise inventory on September 30 is $140,000. All merchandise is sold at 40% above cost.... View Full Document

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