ACCT 241 Week 8 Quiz

ACCT 241 Week 8 Quiz | Assignment Help | American University 

1.

The following information was taken from the production budget of Piwte Corporation for next quarter:

How many units is the company expecting to sell in the month of February?

Multiple ChoiceTop of Form

132,000

138,000

135,000

134,000

2.

Frolic Corporation has budgeted sales and production over the next quarter as follows:

The company has 5,800 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 80,500 units. Budgeted sales for September would be (in units):

Garrison 16e Rechecks 2017-09-30, 2017-10-31

Multiple ChoiceTop of Form

73,700

64,000

71,750

73,000

3.

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:

Four pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 84,240 pounds of raw materials on hand on January 1. Budgeted production for February should be:

Multiple ChoiceTop of Form

57,200 units

81,600 units

81,000 units

20,500 units

Bottom of Form

4.

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:

Multiple ChoiceTop of Form

500,000 units

520,000 units

510,000 units

570,000 units

5.

Harrti Corporation has budgeted for the following sales:

Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Harrti's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?

Multiple ChoiceTop of Form

$704,000

$148,800

$598,400

$747,200

6.

Sleeter Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:

1. Budgeted unit sales for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units, respectively. All sales are on credit.
2. The ending finished goods inventory equals 30% of the following month's sales.
3. The ending raw materials inventory equals 30% of the following month’s raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $5.00 per pound.

If 72,000 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:

Multiple ChoiceTop of Form

$559,230

$455,100

$350,970

$347,100

Bottom of Form

7.

BW Department Store expects to generate the following sales for the next three months:

BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?

Multiple ChoiceTop of Form

$330,000

$314,600

$352,800

$327,800

8.

The following are budgeted data:

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 30% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Garrison 16e Rechecks 2017-10-03

Multiple ChoiceTop of Form

21,030 pounds

20,470 pounds

      20,370 pounds

18,330 pounds

Bottom of Form

9.

The Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year:

Budgeted production

Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter's direct material requirements. Budgeted direct materials purchases for the third quarter would be:

Multiple ChoiceTop of Form

114,600 pounds

89,400 pounds

38,200 pounds

29,800 pounds

10.

Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.79 direct labor-hours. The direct labor rate is $11.30 per direct labor-hour. The production budget calls for producing 6,800 units in April and 6,600 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?

Multiple ChoiceTop of Form

$120,842.20

$119,621.80

$123,848.00

$133,498.20