1/ Garcia Corporation\'s April sales forecast projects that 6,000 units will sel
ID: 2554416 • Letter: 1
Question
1/ Garcia Corporation's April sales forecast projects that 6,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be:
Multiple Choice
6,000 units.
7,000 units.
6,300 units.
7,300 units.
None of the choices are correct.
2/ Western Company is preparing a cash budget for June. The company has $11,700 cash at the beginning of June and anticipates $30,300 in cash receipts and $35,100 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Multiple Choice
Borrow $10,000.
Repay $3,100.
Borrow $4,800.
Borrow $3,100.
Repay $6,900.
3/ Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 192,000 in October, 200,500 in November, and 197,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $149,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Multiple Choice
$341,000.
$149,000.
$134,400.
$289,350.
$283,400.
Explanation / Answer
Dear student, only one question is allowed at a time. I am answering the first question
Desired closing Inventory
= Opening Inventory x (1 + 30/100)
= 1,000 x 1.30
= 1,300 units
Now, Units required to be purchased
= Closing Inventory + Sales – Opening Inventory
= 1,300 + 6,000 – 1,000
= 6,300 units
So, as per above calculations, option C is the correct option
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