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The following are budgeted data one pound of material

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33. The following are budgeted data: One pound of material is required for each finished unit. The inventory of materials at the end of each  month should equal 20% of the following month’s production needs. Purchases of raw materials for  February should be:  A) 19,600 pounds B) 20,400 pounds C) 18,400 pounds D) 18,600 pounds Level: Medium    LO:  4    Ans:  C 34. Rhett Company manufactures and sells dress shirts. Each shirt (unit) requires 3 yards of cloth.  Selected data from Rhett’s master budget for next quarter are shown below: How many yards of cloth should Rhett plan on purchasing in May? 35. Sparks Company has a cash balance of $7,500 on April 1. The company must maintain a minimum  cash balance of $6,000. During April, cash receipts of $48,000 are planned. Cash disbursements during  the month are expected to total $52,000. Ignoring interest payments, during April the company will need  to borrow:  36. For May, Young Company has budgeted its cash receipts at $125,000 and its cash disbursements at  $138,000. The company’s cash balance on May 1 is $17,000. If the desired May 31 cash balance is  $20,000, then how much cash must the company borrow during the month (before considering any  interest payments)?  Brewer, Introduction to Managerial Accounting, 3/e 110
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Brewer, Introduction to Managerial Accounting, 3/e 111
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37. Milano Corporation is working on its direct labor budget for the next two months. Each unit of output  requires 0.50 direct labor-hours. The direct labor rate is $9.80 per direct labor-hour. The production  budget calls for producing 6,400 units in October and 6,300 units in November. If the direct labor work  force is fully adjusted to the total direct labor-hours needed each month, what would be the total  combined direct labor cost for the two months? A) $30,870 B) $31,360 C) $62,230 D) $31,115 Level: Easy    LO:  5    Ans:  C
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