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SAMPLE EXAM: CHAPTER 9 ***SOLUTION FOUND AT END OF FILE*** 1. Dorothy's total budgeted purchases of burlap for next quarter are shown below: July August September Required purchases $15,300 $16,500 $18,000 Dorothy has to pay for 75% of her purchases in the month of purchase and 25% within the month following purchase. Based on this information, what is Dorothy's cash disbursements during the month of August? a. $15,600 b. $16,200 c. $16,500 d. $16,875 e. none of the above 2. English Bagel is to begin operations in January and desires to have an inventory at the end of each month equal to 20% of the next month’s sales. The expected sales for the next four months are: January 12,000 units, February10,000 units, March 16,000 units, and April 20,000 units. The planned production for March will be a. 16,000 units. b. 16,800 units. c. 24,000 units. d. 19,200 units. 3. Based on the following information, calculate the cost of raw materials that should be purchased: Predicted sales 300 units Current finished goods inventory 62 units Desired ending finished goods inventory 100 units Current raw materials inventory 570 gallons Desired ending raw materials inventory 750 gallons Gallons of raw materials per unit of finished goods 8 No beginning or ending work-in-process inventory Raw material price per gallon $ 2 a. $4,552.00 b. $5,048.00 c. $5,408.00 d. $5,768.00 e. none of the above
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USE THE FOLLOWING DATA TO ANSWER THE NEXT 3 QUESTIONS: Southward Corporation is a retailer that began operations in January. Projected sales and cost data for the Southward Corporation are as follows: SALES Cost of Goods Sold January $ 96,000 $48,000 February $100,000 $50,000 March $120,000 $60,000 April $116,000 $54,000 May $130,000 $65,000 Fifty percent of sales are collected in the month of the sale. Forty percent of sales are
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This note was uploaded on 11/22/2011 for the course ACCT 230 taught by Professor Allen during the Fall '08 term at Texas A&M.

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