1. Micro Corporation has budgeted sales of its microchips for the next four-month as follows: Units Sold April 20,000 May25,000 June35,000 July 40,000 The company is preparing a production budget for the third quarter. Ending inventory level must equal 20% of the following month’s sales.
Calculate the ending inventory as of March 31.
Select one:
a. 7,000
b. 8,000
c. 4,000
d. 5,000
2. A Company produces leather handbags. The production budget for the next four months is July 6,000 units, August 8,000, September 7,500, and October 8,000. Each handbag requires 0.5 square meters of leather. A Company‘s leather inventory policy is 30%of next month's production needs. On July 1 leather inventory was expected to be 2,000 square meters. Leather is expected to costRM6.00 per square meter in July.
What is the expected cost of leather purchases in July?
Select one:
a. RM16,200
b. RM13,200
c. RM13,100
d. RM16,300
3. The Asean Good Company produces hand tools. For March, budgeted sales are 12,000 units, beginning finished goods inventory will be 1,200 units, and ending finished goods inventory will be 1,400 units.
March production will be?
Select one:
a. 11,800
b. 14,600
c. 12,200
d. 10,900
4. Mak Siti Company has forecast sales to be RM120,000 in February, RM145,000 in March, RM170,000 in April, and RM180,000in May. All sales are made on credit and sales are collected 60% in the month of sale, and 40% in the month following.
What are budgeted cash receipts in March?
Select one:
a. RM94,500
b. RM131,000
c. RM91,700
d. RM135,000
5. Yezza Company produces hand tools. Budgeted sales will be: March 12,000 units, April 14,000, May 16,000, and June 19,000. Ending finished goods inventory policy is 10% of the following month's sales. March 1 inventory is projected to be 1,500 units.
How many units will be produced in March?
Select one:
a. 11,900
b. 13,000
c. 12,200
d. 14,800
6. Pandemic Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000.
To maintain the $10,000 required balance, during June the company must:
Select one:
a. Borrow RM2,500
b. Borrow RM10,000
c. Borrow RM7,500
d. Borrow RM4,500