# Traverse Co. desires a December 31 ending inventory of 2,867 units.

1. Traverse Co. desires a December 31 ending inventory of 2,867 units. Budgeted sales for December are 3,909 units. The November 30 inventory was 1,919 units. What are Budgeted purchases in units for December ?Answer to nearest whole dollar without any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000). Enter a negative number as -10 not (10). Indicate an increase as a positive number and a decrease as a negative number.2. Pratt Co. sells a biodegradable product and has predicted the following sales for the first four months of the current year: Jan \$1,636, Feb \$1,870, Mar \$2,200, and April \$1,537Ending inventory for each month should be 30% of the next month’s sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? Answer to nearest whole dollar without any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000). Enter a negative number as -10 not (10). Indicate an increase as a positive number and a decrease as a negative number.3. Next year’s sales forecast shows that 23,151 units of Product A and 11,780 units of Product B are going to be sold for prices of \$13 and \$26, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 3,070 units. The beginning inventory of Product B is 2,664 units. The desired ending inventory of B is 2,974 units. What is the forecasted sales in dollars for next year?Answer to nearest whole dollar without any commas, decimal points, or words (e.g. 1000 not 1,000.00 or increase 1000). Enter a negative number as -10 not (10).4. Southern Company is preparing a cash budget for June. The company has \$11,860 cash at the beginning of June and anticipates \$37,956 in cash receipts and \$35,128 in cash disbursements during June. Southern Company has an agreement with its bank to maintain a cash balance of at least \$9,055. As of May 31, the company owes \$51,366 to the bank. To maintain the \$9,055 required balance, during June how much will the company have to borrow or repay. Indicate borrow as a negative number and repayments as a positive number.5. Lasher Company’s budget includes the following credit sales for the current year: September, \$26,972; October, \$31,681; November, \$34,229; December, \$36,448. Experience has shown that payment for the credit sales is received as follows: 13% in the month of sale, 47% in the first month after sale, the remainder in the second month after sale. How much cash can Lasher Company expect to collect in November as a result of current and past credit sales?6.Kekaha’s expects its September sales to be 20% higher than its August sales of \$153,956. Purchases were \$93,920 in August and are expected to be \$129,393 in September. All sales are on credit and are collected as follows: 33% in the month of the sale and the remaining in the following month. Merchandise purchases are paid as follows: 16% in the month of purchase and the remainder in the following month. The beginning cash balance on September 1 is \$7,621. What would the ending cash balance on September 30 be:7.Budgets are established in advance to help organizations communicate their plans to employees and to help employees coordinate activities across the entire organization.8.A direct labor budget is regarded as the starting point for the master budget.TrueFalse9.Theunits to be produced in the production budget is typically the same as theexpected sales in units in the sales budget.TrueFalse10. Sales personnel who are paid a bonus for exceeding budgeted sales have an incentive to underestimate sales when establishing the sales budget.TrueFalse

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