Filters
Question type

Study Flashcards

Sill Corporation makes one product.Budgeted unit sales for January,February,March,and April are 9,900,11,400,11,900,and 13,400 units,respectively.The ending finished goods inventory equals 20% of the following month's sales.The ending raw materials inventory equals 40% of the following month's raw materials production needs.Each unit of finished goods requires 5 pounds of raw materials.If 61,000 pounds of raw materials are required for production in March,then the budgeted raw material purchases for February is closest to:


A) 58,900 pounds
B) 104,900 pounds
C) 57,500 pounds
D) 81,900 pounds

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. -If the company estimates that it will need 59,550 pounds of raw material to satisfy production needs in March,then the raw materials inventory balance at the end of February should be closest to:


A) $23,820
B) $222,180
C) $22,040
D) $244,220

E) None of the above
F) All of the above

Correct Answer

verifed

verified

Reaser Corporation makes one product. Reaser Corporation makes one product.   Each unit of finished goods requires 4 pounds of raw materials.The ending finished goods inventory equals 10% of the following month's sales.The ending raw materials inventory equals 40% of the following month's raw materials production needs.If 50,600 pounds of raw materials are required for production in June,then the budgeted raw material purchases for May is closest to: A)  56,600 pounds B)  42,056 pounds C)  71,144 pounds D)  36,360 pounds Each unit of finished goods requires 4 pounds of raw materials.The ending finished goods inventory equals 10% of the following month's sales.The ending raw materials inventory equals 40% of the following month's raw materials production needs.If 50,600 pounds of raw materials are required for production in June,then the budgeted raw material purchases for May is closest to:


A) 56,600 pounds
B) 42,056 pounds
C) 71,144 pounds
D) 36,360 pounds

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Garry Corporation's most recent production budget indicates the following required production: Garry Corporation's most recent production budget indicates the following required production:   Each unit of finished product requires 5 pounds of raw materials.The company maintains raw materials inventory equal to 25% of the next month's expected production needs.How many pounds of raw material should Garry plan on purchasing for the month of November? A)  1,006,250 B)  793,750 C)  1,012,500 D)  893,500 Each unit of finished product requires 5 pounds of raw materials.The company maintains raw materials inventory equal to 25% of the next month's expected production needs.How many pounds of raw material should Garry plan on purchasing for the month of November?


A) 1,006,250
B) 793,750
C) 1,012,500
D) 893,500

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Douglas Corporation plans to sell 24,000 units of Product A during July and 30,000 units during August.Sales of Product A during June were 25,000 units.Past experience has shown that end-of-month inventory should equal 3,000 units plus 30% of the next month's sales.On June 30 this requirement was met.Based on these data,how many units of Product A must be produced during the month of July?


A) 28,800
B) 22,200
C) 24,000
D) 25,800

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given.    Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.)  The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The  selling and administrative expenses  are paid in the month of the sale. -The amount of cash collected during June should be: A)  $32,000 B)  $40,000 C)  $40,400 D)  $41,000 Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "selling and administrative expenses" are paid in the month of the sale. -The amount of cash collected during June should be:


A) $32,000
B) $40,000
C) $40,400
D) $41,000

E) B) and D)
F) All of the above

Correct Answer

verifed

verified

Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:      Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs. -The budgeted required production for February is closest to: A)  12,390 units B)  19,590 units C)  15,990 units D)  12,000 units Bonkowski Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:      Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs. -The budgeted required production for February is closest to: A)  12,390 units B)  19,590 units C)  15,990 units D)  12,000 units Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs. -The budgeted required production for February is closest to:


A) 12,390 units
B) 19,590 units
C) 15,990 units
D) 12,000 units

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Raimondo Corporation makes one product and has provided the following information: A.The budgeted selling price per unit is $89.Budgeted unit sales for August is 8,300 units. B.Each unit of finished goods requires 4 pounds of raw materials.The raw materials cost $2.00 per pound. C.The direct labor wage rate is $21.00 per hour.Each unit of finished goods requires 2.6 direct labor-hours. D.Manufacturing overhead is entirely variable and is $7.00 per direct labor-hour. The estimated cost of goods sold for August is closest to:


A) $519,580
B) $577,680
C) $670,640
D) $151,060

E) B) and C)
F) None of the above

Correct Answer

verifed

verified

Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:   Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: A)  $544,500 B)  $907,500 C)  $605,000 D)  $363,000 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to:


A) $544,500
B) $907,500
C) $605,000
D) $363,000

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January. o Collections are expected to be 90% in the month of sale and 10% in the month following the sale. o The cost of goods sold is 75% of sales. o The company desires to have an ending merchandise inventory equal to 60% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $24,700. o Monthly depreciation is $16,000. o Ignore taxes. Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: o Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January. o Collections are expected to be 90% in the month of sale and 10% in the month following the sale. o The cost of goods sold is 75% of sales. o The company desires to have an ending merchandise inventory equal to 60% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $24,700. o Monthly depreciation is $16,000. o Ignore taxes.    -The net income for December would be: A)  $39,300 B)  $42,300 C)  $32,900 D)  $55,300 -The net income for December would be:


A) $39,300
B) $42,300
C) $32,900
D) $55,300

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.

A) True
B) False

Correct Answer

verifed

verified

  -The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours.The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month.The variable overhead rate is $4.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $82,360 per month,which includes depreciation of $16,820.All other fixed manufacturing overhead costs represent current cash flows. Required: a.Determine the cash disbursements for manufacturing overhead for February.Show your work! b.Determine the predetermined overhead rate for February.Show your work! -The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours.The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month.The variable overhead rate is $4.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $82,360 per month,which includes depreciation of $16,820.All other fixed manufacturing overhead costs represent current cash flows. Required: a.Determine the cash disbursements for manufacturing overhead for February.Show your work! b.Determine the predetermined overhead rate for February.Show your work!

Correct Answer

verifed

verified

The following information relates to Mapfes Manufacturing Corporation for next quarter: The following information relates to Mapfes Manufacturing Corporation for next quarter:   How many units should the company plan on producing for the month of February? A)  428,000 units B)  391,000 units C)  390,000 units D)  389,000 units How many units should the company plan on producing for the month of February?


A) 428,000 units
B) 391,000 units
C) 390,000 units
D) 389,000 units

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

  -Romeiro Corporation is preparing its cash budget for September.The budgeted beginning cash balance is $46,000.Budgeted cash receipts total $160,000 and budgeted cash disbursements total $152,000.The desired ending cash balance is $70,000.The company can borrow up to $120,000 at any time from a local bank,with interest not due until the following month. Required: Prepare the company's cash budget for September in good form. -Romeiro Corporation is preparing its cash budget for September.The budgeted beginning cash balance is $46,000.Budgeted cash receipts total $160,000 and budgeted cash disbursements total $152,000.The desired ending cash balance is $70,000.The company can borrow up to $120,000 at any time from a local bank,with interest not due until the following month. Required: Prepare the company's cash budget for September in good form.

Correct Answer

verifed

verified

Beginning cash balance $46,000
Add cash ...

View Answer

Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:      Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. -The estimated direct labor cost for August is closest to: A)  $465,000 B)  $684,992 C)  $31,136 D)  $244,640 Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:      Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. -The estimated direct labor cost for August is closest to: A)  $465,000 B)  $684,992 C)  $31,136 D)  $244,640 Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. -The estimated direct labor cost for August is closest to:


A) $465,000
B) $684,992
C) $31,136
D) $244,640

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

The selling and administrative expense budget lists all costs of production other than direct materials and direct labor.

A) True
B) False

Correct Answer

verifed

verified

Paradise Corporation budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels (in units) are planned for next year. Paradise Corporation budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels (in units) are planned for next year.   * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year,the number of units it would have to manufacture during the year would be: A)  500,000 units B)  520,000 units C)  510,000 units D)  570,000 units * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year,the number of units it would have to manufacture during the year would be:


A) 500,000 units
B) 520,000 units
C) 510,000 units
D) 570,000 units

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. -The expected cash collections for February is closest to:


A) $577,500
B) $927,300
C) $349,800
D) $825,000

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. -The estimated selling and administrative expense for February is closest to:


A) $70,000
B) $58,680
C) $88,020
D) $18,020

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

The selling and administrative expense budget of Choo Corporation is based on budgeted unit sales,which are 4,600 units for August.The variable selling and administrative expense is $7.30 per unit.The budgeted fixed selling and administrative expense is $51,980 per month,which includes depreciation of $6,440 per month.The remainder of the fixed selling and administrative expense represents current cash flows.The cash disbursements for selling and administrative expenses on the August selling and administrative expense budget should be:


A) $85,560
B) $45,540
C) $79,120
D) $33,580

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Showing 21 - 40 of 234

Related Exams

Show Answer