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GNB13eCh09Exam - Garrison 13e Practice Exam Chapter 9 Print...

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Garrison 13e Practice Exam – Chapter 9 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. Fifty percent of the sales of Hanson Company sales are for cash; the rest are on credit. Seventy percent of the credit sales are collected in the month of sale, twenty percent in the month following sale, and five percent in the second month following sale. The remainder is expected to be uncollectible. Monthly sales are budgeted as follows: $280,000 for January, $240,000 for February, and $320,000 for March. Prepare a schedule of expected cash collections for the month of March. 2. Paragon Picture Gallery manufactures picture frames. Management believes that an ending inventory equal to 20% of the next month's sales strikes the appropriate balance between excessive and insufficient inventories. Each picture frame requires 1.5 direct labor hours. The average direct labor rate is $10.00 per hour. Budgeted sales of picture frames are 3,200 units
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