Q1. Craft Corporation produces a single product. Last year, the company had a net operating income of $90,560 using absorption costing and $80,900 using variable costing. The fixed manufacturing overhead cost was $6 per unit. There were no beginning inventories. If 28,500 units were produced last year, then sales last year will be?
Q2. The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:
- Sales at $620,000, all for cash
- Merchandise inventory on October 31 was $285,000.
- The cash balance November 1 was $35,000.
- Selling and administrative expenses are budgeted at $111,000 for November and are paid for in cash.
- Budgeted depreciation for November is $59,000.
- The planned merchandise inventory on November 30 is $315,000.
- The cost of goods sold is 70% of the selling price.
- All purchases are paid for in cash.
- There is no interest expense or income tax expense.
Based on that, the budgeted cash receipts for November will be?