Name:

University of Liberal Arts Bangladesh ID: , Section:

MBA Program Date:
Management Accounting
Quiz 1-20 marks

Frame-It Company produces and sells picture frames. To guard against out of stock situations,
the company requires that 20% of the next month's sales be on hand at the end of each
month. Budgeted sales of picture frames over the next three months are:

January February March

Budgeted sales in units 320,000 480,000 400,000

What would budgeted production for February be?

2. Santypal Company has budgeted production for next year as follows:

First Second Third Fourth

Quarter Quarter Quarter Quarter
Production in units 80,000 96,000 128,000 112,000

Ten pounds of raw materials are required for each unit produced. Raw materials on hand at
the beginning of the year total 20,000 lbs. The raw materials inventory at the end of each
quarter should equal 10% of the next quarter's production needs. What would budgeted
purchases of raw materials in the second quarter be?
3. Daley Company plans to sell 96,000 units during the month of August. If the company has
20,000 units on hand at the start of the month, and plans to have 16,000 units on hand at the
end of the month, how many units must be produced during the month?

4. Fifty percent of Java Company's sales are for cash; the rest are on credit. Seventy percent of
the credit sales are collected in the month of sale, twenty percent in the month following sale,
and five percent in the second month following sale. The remainder is expected to be
uncollectible. The following are budgeted sales data:

October November December

Total sales $280,000 $240,000 $320,000

Part (a) How much of the December sales are expected to be collected during December?

Part (b) What is the budgeted amount of total cash receipts in December?