Chap 8 practice

# Chap 8 practice - Chap 8 practice Student: _ 1. Parlee...

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Chap 8 practice Student: ___________________________________________________________________________ 1. Parlee Company's sales are 30% in cash and 70% on credit. Sixty % of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data: Total cash receipts in April would be budgeted to be: A. \$38,900 B. \$47,900 C. \$27,230 D. \$36,230 2. The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Cash collections in June would be: A. \$113,400 B. \$110,000 C. \$111,000 D. \$115,500

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3. Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month? A. 11,500 B. 12,500 C. 12,000 D. 14,000 4. Friden Company has budgeted sales and production over the next quarter as follows: The company has 20,000 units of product on hand at April 1. A minimum of 20% of the next month's sales needs in units must be on hand at the end of each month. July sales are expected to be 140,000 units. Budgeted sales for June would be (in units): A. 188,000 B. 160,000 C. 128,000 D. 184,000 5. Superior Industries' sales budget shows quarterly sales for the next year as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter should be: A. 7,200 units B. 8,000 units C. 8,800 units D. 8,400 units
6. The Tobler Company has budgeted production for next year as follows: Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: A. 63,200 pounds B. 62,400 pounds C. 56,800 pounds D. 50,400 pounds 7. Yumm Dairy Corporation manufactures carrot-flavored ice cream. Yumm's production budget indicated the following units to be produced for the upcoming months: Four (4) ounces of carrots are needed for each gallon of ice cream. Yumm also likes to have enough carrots on hand to cover 5% of the next month's production needs for carrots. How many ounces of carrots should Yumm plan on purchasing during the month of February?

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## This note was uploaded on 01/13/2012 for the course IS 3020 taught by Professor Staff during the Spring '08 term at Kennesaw.

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Chap 8 practice - Chap 8 practice Student: _ 1. Parlee...

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