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Baker Co. is preparing its budget for the first quarter. The following sales data have been forecasted:

April......May.....June....July.... August...

Unit Sales...640...720...780...620...660.

Additional Info:

Inventory on March 31: ...............................192 units

Desired Ending Inventory each month..... 30% of next month's sales

How many units should be purchased in April, May and June? How many units should be purchased in the second quarter in total?

Please help!

Zebra, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity.

Direct materials (6 lbs. @ $2.00/lb.)...............Per Unit $12.00

Direct labor (1 hrs. @ $8.00/hr)......................Per Unit $8.00

During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:

Direct materials (760,000 lbs.)...........$1,558,000

Direct labor (126,000 hrs.).................$1,014,300

Determine the direct materials price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Direct Materials:

Price Variance...............................?

Quantity Variance..........................?

Direct Labor:

Rate Variance...............................?

Efficiency Variance........................?

Thank you!

Cash $300,000

Accounts Receivable 130,000

Inventory 200,000

Store Equipment (net) 400,000

Other Assets 100,000

Mortgage Payable (due in 3 years) 280,000

Note Payable (due in 10 days) 270,000

Accounts Payable 150,000

Capital Stock 100,000

Retained Earnings 330,000

From the above information compute:

(1) Current assets: $_______

(2) Current liabilities: $______

(3) The current ratio: ______ to 1

(4) Working capital: $______

Assume that Hart Company pays the note payable of $270,000, thus reducing cash to $30,000. Compute the following after the completion of this transaction:

(1) The current ratio: ______ to 1

(2) Working capital: $______