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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow: Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January. Collections are expected to be 80% in the month of sale and 20% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 60% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $24,000. Monthly depreciation is $15,000. Ignore taxes.   Balance Sheet October 31   Assets     Cash $ 20,000 Accounts receivable   70,000 Merchandise inventory   153,000 Property, plant and equipment, net of $572,000 accumulated depreciation   1,094,000 Total assets $ 1,337,000       Liabilities and Stockholders’ Equity     Accounts payable $ 254,000 Common stock   820,000 Retained earnings   263,000 Total liabilities and stockholders’ equity $ 1,337,000 December cash disbursements for merchandise purchases would be:

Marst Corporation’s budgeted production in units and budgeted raw materials purchases over the next three months are given below:     January February March Budgeted production (in units) 70,000 ? 80,000 Budgeted raw materials purchases (in pounds) 142,400 151,600 158,800   Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month’s production needs. The company is expected to have 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:

Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities?     Researching new processing methods Shipping orders to grocery stores A) Organization-sustaining Unit B) Batch Batch C) Product Unit D) Organization-sustaining Batch  

Financial results are:

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. December cash disbursements for merchandise purchases would be: 

Adams Enterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:   Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours $3.20 per hour Processing batches Number of batches $103.80 per batch Processing orders Number of orders $98.65 per order Serving customers Number of customers $1,488.00 per customer   The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company’s products, which Adams Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity “Supporting assembly” for this customer this past year was:  

Braston Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow:· Sales are budgeted at $350,000 for November, $330,000 for December, and $340,000 for January.· Collections are expected to be 70% in the month of sale, 26% in the month following the sale, and 4% uncollectible.· The cost of goods sold is 70% of sales.· The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase.· Other monthly expenses to be paid in cash are $20,100.· Monthly depreciation is $22,000.· Ignore taxes.  Total December cash disbursements would be:

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. Expected cash collections in December are:

New product research is an example of (an):

If company A has a higher degree of operating leverage than company B, then: