Flagstaff Company has budgeted production units of 8,000 forJuly and 8,200 for August. The direct materials requirement perunit is 3 ounces (oz.). The company has determined that it wants tohave safety stock of direct materials on hand at the end of eachmonth to complete 25% of the units budgeted in the following month.There was 6,000 ounces of direct material in inventory at the startof July. The total cost of direct materials purchases for the Julydirect materials budget, assuming the materials cost $1.20 perounce, is:

A) $28,800.

B) $28,980.

C) $21,600.

D) $28,620.

E) $36,180.

A sporting goods manufacturer budgets production of 55,000 pairsof ski boots in the first quarter and 46,000 pairs in the secondquarter of the upcoming year. Each pair of boots require 2 kg of akey raw material. The company aims to end each quarter with endingraw materials inventory equal to 15% of the following quarter’smaterial needs. Beginning inventory for this material is 16,500 kgand the cost per kg is $8. What is the budgeted materials need inkg. in the first quarter?

A) 123,800 kg.

B) 107,300 kg.

C) 140,300 kg.

D) 110,000 kg.

E) 126,500 kg.

Based on a predicted level of production and sales of 16,000units, a company anticipates total variable costs of $78,400, fixedcosts of $27,200, and operating income of $34,080. Based on thisinformation, the budgeted amount of variable costs for 13,000 unitswould be:

A) $165,192.

B) $27,200.

C) $61,280.

D) $63,700.

E) $78,400.

Memphis Company anticipates total sales for April, May, and Juneof $830,000, $930,000, and $980,000 respectively. Cash sales arenormally 30% of total sales. Of the credit sales, 30% are collectedin the same month as the sale, 65% are collected during the firstmonth after the sale, and the remaining 5% are collected in thesecond month. Compute the amount of accounts receivable reported onthe company’s budgeted balance sheet for June 30.

A) $480,200.

B) $543,900.

C) $512,750.

D) $851,950.

E) $922,950.

Ratchet Manufacturing anticipates total sales for August,September, and October of $210,000, $215,000, and $225,500respectively. Cash sales are normally 20% of total sales and theremaining sales are on credit. All credit sales are collected inthe first month after the sale. Compute the amount of cash receivedfor September.

A) $211,000.

B) $168,000.

C) $85,000.

D) $172,000.

E) $340,000.