In: Accounting
q1: Vaughn Manufacturing plans to sell 9000 purple lawn chairs during May, 6700 in June, and 9000 during July. The company keeps 15% of the next month’s sales as ending inventory. How many units should Vaughn produce during June?
Not enough information to determine |
8050 |
6355 |
7045 |
q2: The following information was taken from Crane Company’s cash budget for the month of July:
Beginning cash balance | $380000 |
Cash receipts | 204000 |
Cash disbursements | 444000 |
If the company has a policy of maintaining a minimum end of the
month cash balance of $300000, the amount the company would have to
borrow is
$140000. |
$160000. |
$80000. |
$96000. |
q3: The following information is taken from the production budget for the first quarter:
Beginning inventory in units | 1600 |
Sales budgeted for the quarter | 376000 |
Capacity in units of production facility | 422000 |
The correct answers are:
Q1: Option (D) - 7,045
Q2 : Option (B) - $160,000
Q3 : Option (D) - 378,000
Q4 : Option (A) - 5,200
Attached below are the explanations for all:
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