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Razz company is estimating the following sales sales

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28. Razz Company is estimating the following sales: Sales at Razz are normally collected as follows: 10% in the month of sale; 60% in the month following  the sale; and the remaining 30% in the second month following the sale. In Razz’s budgeted balance sheet at December 31, at what amount will accounts receivable be shown?  A) $49,500 B) $76,500 C) $120,500 Brewer, Introduction to Managerial Accounting, 3/e 107
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D) $135,500 Level: Medium    LO:  2    Ans:  B Brewer, Introduction to Managerial Accounting, 3/e 108
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29. On January 1, Colver Company has 6,500 units of Product A on hand. During the year, the company  plans to sell 15,000 units of Product A, and plans to have 5,000 units on hand at year end. How many  units of Product A must be produced during the year?  30. Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of-month  inventory should equal 3,000 units plus 30% of the next month’s sales. On June 30 this requirement was  met. Based on these data, how many units of Product A must be produced during the month of July?  31. Villi Manufacturing Corporation’s most recent sales budget indicates the following expected sales (in  units): Villi wants to maintain a finished goods inventory of 20% of the next month’s expected sales. How many  units should Villi plan on producing for the month of August?  32. Sharp Company, a retailer, plans to sell 15,000 units of Product X 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 of Product X must be purchased from the supplier during the month?  A) 14,500 B) 15,500 C) 15,000 D) 17,000 Level: Easy    LO:  3    Ans:  A Brewer, Introduction to Managerial Accounting, 3/e 109
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