.Planning involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change True False ACCT 232 CHAPTER 7 QUIZ I. 2. A benefit of self imposed budgeting is that it may allow lower-level managers to create budgetary slack True False The first budget a company prepares in a master budget is the production budget. True False 4. .The direct materials budget is typically prepared before the production budget True False 5. .A self-imposed budget is a budget that is prepared with the full cooperation and participation of managers at all levels True False 6. The Fraley Corporation, a merchandising firm, has planned the following sales for the next four months: March April MayJune July 5,000 7000 9,000 6,000 8,000 Sales in units Sales price/unit 10 10 10 10 10 Total budgeted sales S50,000 $70,000 590,000 560,000 $80,000 From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale First month following month of sale Uncollectible 60% | 35% 5% Fraley likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Required: 1. Compute the budgeted cash receipts for May. 2. Compute the budgeted product budget for May