The production budget shows expected unit sales of 16,000. Beginning finished goods units are 2,800. Required production units are 16,800. What are the desired ending finished goods units?

	A.	2,000.
	B.	2,800.
	C.	3,200.
	D.	3,600.

2. The direct materials budget shows:

Desired ending direct materials 12,000 pounds

Total materials required 18,000 pounds

Direct materials purchases 15,800 pounds

The total direct materials needed for production is

	A.	6,000 pounds.
	B.	2,200 pounds.
	C.	3,800 pounds.
	D.	33,800 pounds.

3. A company budgeted unit sales of 51,000 units for January, 2002 and 60,000 units for February, 2002. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 15,300 units of inventory on hand on December 31, 2001, how many units should be produced in January, 2002 in order for the company to meet its goals?

	A.	53,700 units
	B.	51,000 units
	C.	48,300 units
	D.	69,000 units

4. A company determined that the budgeted cost of producing a product is $20 per unit. On June 1, there were 20,000 units on hand, the sales department budgeted sales of 75,000 units in June, and the company desires to have 30,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be

	A.	$1,300,000.
	B.	$1,900,000.
	C.	$1,500,000.
	D.	$1,700,000.

5. The following information was taken from Sloan Company's cash budget for the month of July:

Beginning cash balance $ 90,000

Cash receipts $57,000

Cash disbursements $102,000

If the company has a policy of maintaining a minimum end of the month cash balance of $75,000, the amount the company would have to borrow is

	A.	$30,000.
	B.	$15,000.
	C.	$45,000.
	D.	$18,000.

6. The following credit sales are budgeted by Roswell Company:

January $34,000 February $50,000 March $70,000 April $60,000

The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is

	A.	$61,720.
	B.	$56,000.
	C.	$60,000.
	D.	$58,800.

7. A company's past experience indicates that 60% of its direct materials purchases are paid for in the month of purchase and 40 % in the next month.

Budgeted direct materials purchases were: January $ 80,000 February $48,000 March $120,000

The cash payments in the month of March is expected to be

	A.	$91,200.
	B.	$76,800.
	C.	$72,000.
	D.	$128,000.