9. Oak Tree Company\'s budgeted sales in the first quarter of 2016 are as follow
ID: 2509216 • Letter: 9
Question
9. Oak Tree Company's budgeted sales in the first quarter of 2016 are as follows: $100,000 in January $120,000 in February, and S 150,000 in March. Alpha Company expects to collect 80% of sales is the month of sale and 20% in the following month. What are the expected cash receipts for February? A. $120,000 B. $126,000 C. $116,000 D. Not enough information Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: 7.000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense 551 S12 S2 S5 Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense $441,000 $112,000 10. The absorption costing unit product cost is: A. $149 per unit B. $65 per unit C. $63 per unit D. $128 per unit 11. George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the number of units sold, then net operating income under the absorption method for the year will A. be equal to the net operating income under variable costing. B. be less than the net operating income under variable costing. C. be greater than the net operating income under variable costing. D. be equal to the net operating income under variable costing less total fixed manufacturing costs. 12. The usual starting point for a master budget is: A. the direct materials purchase budget B. the budgeted income statement C. the sales budget D the production budgetExplanation / Answer
Dear student, only one question is allowed at a time. I am answering the first question
9)
Collection for February
= 80% of Sales of February + 20% of Sales of January
= 80% of $120,000 + 20% of $100,000
= $96,000 + $20,000
= $116,000
So, as per above calculations, option C is the correct option
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