71. Tannwin Co. sells a new product called Accountomatic and has predicted the following sales for the first four months of the current year: Jan. Feb. March April Sales in...

71. Tannwin Co. sells a new product called Accountomatic and has predicted the following sales for the first four months of the current year:

Ending inventory for each month should be 20% of the next month's sales, and the prior December 31 inventory is consistent with that policy. How many units should be purchased in the first quarter of the year?
A. 5,100
B. 5,680
C. 6,300
D. 6,000
E. 5,700

72. Fairway's April sales forecast projects that 6,000 units will sell at a price of $10.50 per unit. The desired ending inventory is 30% higher than the beginning inventory, which was 1,000 units. Budgeted purchases of units in April would be:
A. 6,000 units
B. 7,000 units
C. 6,300 units
D. 7,300 units
E. Some other amount

Reference: 20_01

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of B is 3,000 units.

73. Total budgeted sales of both products for the year would be:
A. $42,000
B. $200,000
C. $264,000
D. $464,000
E. $500,000

74. Budgeted purchases of Product A for the year would be:
A. 22,400 units
B. 20,400 units
C. 20,000 units
D. 19,500 units
E. 12,200 units

75. Budgeted purchases of Product B for the year would be:
A. 24,500 units
B. 22,500 units
C. 16,500 units
D. 26,500 units
E. 20,500 units

76. A quantity of merchandise or materials over the minimum needed reduce the risk of running short is called:
A. Just-in-time inventory.
B. Budgeted stock.
C. Continuous inventory.
D. Capital stock.
E. Safety stock.

77. Stritch Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must be purchased in September?
A. 14,000
B. 20,000
C. 22,000
D. 24,000
E. 28,000

78. Lingstat Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 15% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 5,000 units, 6,000 units, and 4,000 units, respectively. How many units must be purchased in September?
A. 6,600
B. 6,150
C. 5,850
D. 5,700
E. 6,300

79. Barrett's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for the fourth quarter should be:
A. $134,000
B. $109,000
C. $91,500
D. $25,000
E. $91,000

80. A Company forecasts sales of $91,500 for the quarter ended December 31. Its gross profit rate is 18% of sales, and its September 30 inventory is $25,000. If the December 31 inventory is targeted at $7,500, budgeted purchases for the fourth quarter should be:
A. $57,530
B. $107,530
C. $0
D. $82,530
E. $91,000