Question

1) Fantastic Futons manufactures futons. The estimated number offuton sales for the first three months of 2010 are asfollows:

January	40,000
February	50,000
March	60,000

Finishedgoods inventory at the end of 2009 was 12,000 units. On average, 25percent of the futons are produced during the month before they aresold, which normally accounts for the ending balance in finishedgoods inventory. The planned selling price is $150 perunit.Whatwould be the sales budget for March?

2) Fantastic Futons manufactures futons. The estimated number offuton sales for the first three months of 2010 are asfollows:

January	40,000
February	50,000
March	60,000

Finishedgoods inventory at the end of 2009 was 12,000 units. On average, 25percent of the futons are produced during the month before they aresold, which normally accounts for the ending balance in finishedgoods inventory. The planned selling price is $150 perunit.FantasticFutons buys direct materials for the futons in cloth rolls pricedat $80 each. Each roll provides direct material for 40 futons.There was one roll in the direct materials inventory at thebeginning of January, and the company expects to have four rolls ininventory at the end of the month. Assuming the production budgetcalls for 60,000 units to be produced in January, what would be theamount of the cloth rolls direct materials purchases budget forthat month?

3) Fantastic Futons goes through two departments in the productionprocess. Each futon requires two direct labor hours in Department Aand one hour in Department B. Labor cost is $8 per hour inDepartment A and $10 per hour in Department B.Assumingthe amount budgeted to be produced in January is 30,000 units, whatis the budgeted direct labor cost for January?

4) The projections of direct materials purchases that follow arefor the Sombo Corporation.

	Purchases on Account	Cash Purchases
December	$40,000	$30,000
January	60,000	33,000
February	50,000	35,000
March	70,000	25,000

Thecompany pays for 60 percent of purchases on account in the month ofpurchase and 40 percent in the month following the purchase. Whatis the expected cash payment for direct materials for the month ofJanuary?

5) Fallgatter, Inc., expects to sell 17,500 units. Each unit requires3 pounds of direct materials at $12 per pound and 2 direct laborhours at $10 per direct labor hour. The overhead rate is $8 perdirect labor hour. The beginning inventories are as follows: directmaterials, 2,000 pounds; finished goods, 2,500 units. The plannedending inventories are as follows: direct materials, 5,600 pounds;finished goods, 3,000 units.Givena planned production of 10,000 units, what are the planned directmaterials purchases?

6) Leaverton's forecast of sales is as follows: July, $60,000;August, $90,000; September, $130,000. Sales are normally 80 percentcash and 20 percent credit in any month. Credit sales are collectedin full in the following month. Merchandise cost averages 60percent of sales price. The company desires an inventory as ofSeptember 30 of $52,000. The inventory as of June 30 was$25,000.Totalcash receipts for August will be