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Problem 1: Lorie Nursery plans to sell 320 potted plants during April and 240 units in May. Lorie Nursery keeps 15% of the next month's sales as ending inventory. How many units should Lorie Nursery produce during April?
Select one:
a. 320
b. 308
c. 356
d. 332
Problem 2: Pell Manufacturing is preparing its direct labor budget for May. Projections for the month are that 33,400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?
a. 1,296,000
b. 1,159,200
c. 1,202,400
d. 1,180,800
Problem 3: Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.
Cash collections for the third quarter are budgeted at
a. $4,746,000
b. $9,576,000
c. $6,888,000
d. $8,274,000
At the end of 2010, Sherwood Company had retained earnings of $18,240. During 2011, Sherwood had revenues of $837,400 and expenses of $792,100, and paid cash dividends in the amount of $38,650. Determine the amount of Sherwood’s retained earnings at ..
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