Question1: If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is ________.
[A] 7,100
[B] 7,200
[C] 7,000
[D] 6,900
Question2: Dandy Jeans sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for USD 85.00 a pair and Fancy Life sells for USD 100.00 a pair. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, thirty-five percent is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are as follows: January 20,000 jeans, February 27,500 jeans, and March 25,000 jeans. The estimated sales for Fancy are as follows: January 18,000 jeans, February 19,000, and March 20,500 jeans. Determine the expected cash receipts for the month of March?
[A] $2,125,000
[B] $4,175,000
[C] $3,988,125
[D] $2,505,000
Question3. The Martin Company had a finished goods inventory of 55,000 units on January 1st. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Martin Company wishes to maintain a desired ending finished goods inventory of twenty percent of the following month’s sales. Determine the budgeted production for January month?
[A] 200,000
[B] 219,000
[C] 236,000
[D] 181,000