70.2K

Verified Solution

Link Copied!

Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 320 340 280 Sales in units 280 Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 112 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is: Multiple Choice 264 units. 192 units. 456 units. 320 units. O 328 units. O Ruiz Co. provides the following unit sales forecast for the next three months: January February March 3,400 4,600 5,400 Sales units The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on December 31 is 680 units. The budgeted production units for January are: Multiple Choice 3,400 units. 4,320 units. 136 units. 3,640 units. 3,160 units. Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 60% in the next month, and 10% in the second following month. Wichita Industries' had $32,000 from November sales and $42,000 from December sales. Assume that total sales for January and February are budgeted to be $70,000 and $140,000, respectively. What are the expected cash receipts for February from current and past sales? Multiple Choice $51,800. $93,380. $43,800. $61,000. $75,800

Answer & Explanation Solved by verified expert

See Answer