1) Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at
- 274,500.
- 207,000.
- 216,000.
- 220,500.
2) The responsibility for expressing management's budgeting goals in financial terms is performed by the
- accounting department.
- budget committee.
- top management.
- lower level of management.
3 Correy Inc. reported the following information for 2013:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
All sales are on credit.
- Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
- Cost of goods sold is 35% of sales.
- Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
- Accounts payable is used only for inventory acquisitions.
4.How much cash will Correy receive during November?
- $220,000
- $490,000
- $450,000
- $440,000