1) Walnut has forecast sales for the next three months as follows: July 4,800 un

Question

1)

Walnut has forecast sales for the next three months as follows: July 4,800 units, August 6,300 units, September 8,300 units. Walnut's policy is to have an ending inventory of 45% of the next month's sales needs on hand. July 1 inventory is projected to be 2,100 units. Selling and administrative costs are budgeted to be $24,000 per month plus $6 per unit sold. What are budgeted selling and administrative expenses for July?

$58,410

$48,300

$33,210

$52,800

2)

Grover has forecast sales to be $125,000 in February, $138,000 in March, $158,000 in April, and $149,000 in May. The average cost of goods sold is 80% of sales. All sales are on made on credit and sales are collected 65% in the month of sale, and 35% the month following. What are budgeted cash receipts in March?

$94,150

$133,450

$137,450

$96,950

3)

You wish to take an Excel course. You may enroll at one within your school or you may take a community class at the local library. You've gathered the following information to aid in your decision-making process.

If you enroll in the community class, you will be unable to work at your regular job on weekends for the eight weekend days when the class meets. If you typically earn $250 per weekend shift, which option would you choose (considering enrollment cost and opportunity cost)?

Neither alternative

Both alternatives

College course

Community course

Costs/Benefits College Course Community Course Cost $2,500 $1,340 Distance to course 0.35 miles (walking distance) 15 miles (driving distance) Timing of course Weekday Weekend Number of meetings 16 8 Qualitative considerations Convenience, quality of instruction Flexibility, brief duration

Explanation / Answer

1) $52,800

2)  $133,450

3)  College course

by considering opportunity cost, community course is expensive

Fixed selling and administrative expenses          24,000 variable selling and administrative expenses          28,800 budgeted selling and administrative expenses for July          52,800

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