1. Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning inventory Ending inventory Finished goods (units) 28,000 78,000 Raw materials (grams) 58,000 48,000 Each unit of finished goods requires 2 grams of raw materials. The company plans to sell 750,000 units during the year, how much raw material should the company buy during the year?

2.

Adams Corporation, a trading company, has budgeted its activity for November based on the following information:

• Sales to $580,000, all in cash.

• Merchandise inventory as of October 31 was $265,000.

• The cash balance on November 1 was $31,000.

• Selling and administrative expenses are budgeted at $99,000 for November and are paid in cash.

• The budgeted depreciation for November is $51,000.

• Planned merchandise inventory for November 30 is $295,000.

• The cost of goods sold is 70% of the sale price.

• All purchases are paid for in cash.

• There is no interest expense or income tax expense.

The budgeted cash receipts for November are:

Answer rating: 100% (QA)

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