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16) Upstairs Company has the following data: Month Budgeted Sales January\$108,000 February132,000
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# Question : 16) Upstairs Company has the following data: Month Budgeted Sales January\$108,000 February132,000 : 1419246

16) Upstairs Company has the following data:

Month        Budgeted Sales

January\$108,000

February132,000

March144,000

April120,000

The gross profit rate is 40% of sales and ending inventory at December 31 was \$19,440. Desired ending inventory levels are 30% of next month's sales at cost. What are the expected total purchases for February?

A) \$79,200

B) \$81,360

C) \$102,960

D) \$105,120

17) Sebring Company has the following data:

Month       Budgeted Sales

April\$40,000

May44,000

June50,000

July52,000

August48,000

The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost. ________ was the beginning inventory on May 1.

A) \$3,300

B) \$7,700

C) \$8,750

D) \$11,000

18) Segal Company has the following data:

Month       Budgeted Sales

May\$46,000

June50,000

July52,000

August49,000

The cost of goods sold percentage is 80% of sales and the desired ending inventory level is 25% of next month's sales at cost. What is the beginning inventory on August 1?

A) \$4,200

B) \$8,450

C) \$9,800

D) \$10,400

19) Bronkov Company has the following data:

Month       Budgeted Sales

May\$46,000

June50,000

July52,000

August48,000

The cost of goods sold percentage is 65% of sales and the desired ending inventory level is 25% of next month's sales at cost. What are the expected total purchases for June?

A) \$17,500

B) \$32,500

C) \$32,825

D) \$40,950

20) Audrey Company has the following data:

Month       Budgeted Sales

May\$46,000

June50,000

July52,000

August48,000

The cost of goods sold percentage is 65% of sales and the desired ending inventory is 25% of next month's sales at cost. What are the total purchases budgeted for July?

A) \$33,150

B) \$33,800

C) \$41,600

D) \$42,250

21) Santelle Company expects August sales to be \$30,000. Approximately 40% of sales are cash sales. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in August from August sales.

A) \$9,000

B) \$12,000

C) \$21,000

D) \$36,000

22) Hoover Company expects June sales to be \$30,000. Of these sales, credit sales are expected to be \$12,000. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in June from June sales.

A) \$9,200

B) \$14,000

C) \$17,200

D) \$24,000

23) Bush Company expects May sales to be \$20,000. Approximately 40% of sales are cash sales. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in May from May sales.

A) \$4,000

B) \$6,000

C) \$8,000

D) \$14,000

24) The following sales budget has been prepared:

Month         Cash Sales    Credit Sales

September\$167,000\$123,000

October225,000180,000

November330,000210,000

December135,000190,000

Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What are the estimated cash collections in December?

A) \$135,000

B) \$197,000

C) \$325,000

D) \$332,000

25) Stickel Company has the following sales budget:

Month           Cash Sales    Credit Sales

September\$100,000\$200,000

October125,000190,000

November207,000199,000

December67,000144,000

Collection of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What is the expected balance of Accounts Receivable at October 31?

A) \$95,000

B) \$110,000

C) \$115,000

D) \$180,000

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