Page 237 - BA2 Integrated Workbook - Student 2017
P. 237
Supplementary objective test questions
Questions 6.2 and 6.3 are based on the following budgeted information for a
paint manufacturer:
October November December
Units Units Units
Opening inventory 100 120 150
Closing inventory 120 150 130
Sales 500 450 520
The cost of inventory is $10 per unit with 40% of purchases for cash, 30% paid in the
month after purchase and 30% paid two months after purchase.
6.2 The budgeted number of units to be purchased in November was:
A 440
B 480
C 520
D 560
6.3 The value of purchases in October were budgeted to be:
A $4,400
B $4,800
C $5,200
D $5,600
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