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1.The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows:

Number of foam cushions to be produced in July	13, 000
Number of foam cushions to be produced in August		12, 000
Number of foam cushions to be produced in September		14, 000

Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August?

A.18,000

B.25, 000

C.30,000

D.31, 000

2.Meers Corporation had beginning inventory of 23,000 units and expects sales of 78,500 units during the year. Desired ending inventory is 20,000 units. How many units should Meers Corporation produce?

A. 121, 500 units

B. 75,500 units

C. 81,500 units

D. 35, 500units

3.Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

Account	Amount	Account	Amount
Membership revenue	$140,000	Personal trainer wages expense	?
Personal training revenue	$75,000	Space rental expense	$11,000
Product sales	$65,000	Straight line depreciation expense	$6,000
Cost of product sold	$35,000	Rental insurance expense	$3,000
Front desk staff wages expense	$12,000

If a traditional income statement is prepared for the year, what is Gross Profit?

A. $207,500

B. $280,000

C. $245,000

D. $315,000

4. Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5,000 anchors, Sea Side Enterprises average cost per anchor is $52.00. If $15,000 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, her forecast for 6,000 anchors will be

A. $52,000.

B. $309,000.

C. $260,000.

D. $312,000

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