Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:Retained earnings at the end of December would be:

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:Retained earnings at the end of December would be:

A. $572,900
B. $614,400
C. $621,300
D. $529,000

Answer: B

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:Accounts payable at the end of December would be:

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:Accounts payable at the end of December would be:

A. $271,500
B. $105,000
C. $166,500
D. $262,500

Answer: A

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:The accounts receivable balance, net of uncollectible accounts, at the end of December would be:

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:The accounts receivable balance, net of uncollectible accounts, at the end of December would be:

A. $154,000
B. $157,500
C. $85,500
D. $303,600

Answer: A

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: The net income for December would be:

Carpon Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: The net income for December would be:

A. $66,400
B. $43,900
C. $47,400
D. $61,500

Answer: B

Deshaies Corporation is preparing its cash budget for November. To attain its desired ending cash balance for November, the company should borrow:

Deshaies Corporation is preparing its cash budget for November. To attain its desired ending cash balance for November, the company should borrow:

A. $36,000
B. $30,000
C. $24,000
D. $0

Answer: C

Deshaies Corporation is preparing its cash budget for November. The excess (deficiency) of cash available over disbursements for November is:

Deshaies Corporation is preparing its cash budget for November. The excess (deficiency) of cash available over disbursements for November is:

A. $110,000
B. $6,000
C. ($4,000)
D. $14,000

Answer: B

Dengel Inc. is working on its cash budget for November. To attain its desired ending cash balance for November, the company needs to borrow:

Dengel Inc. is working on its cash budget for November. To attain its desired ending cash balance for November, the company needs to borrow:

A. $0
B. $16,000
C. $50,000
D. $84,000

Answer: B

Dengel Inc. is working on its cash budget for November. The excess (deficiency) of cash available over disbursements for November will be:

Dengel Inc. is working on its cash budget for November. The excess (deficiency) of cash available over disbursements for November will be:

A. $34,000
B. $201,000
C. $10,000
D. $14,000

Answer: A

The Gomez Company, a merchandising firm, has budgeted its activity for December according to budgeted net income for December is:

The Gomez Company, a merchandising firm, has budgeted its activity for December according to budgeted net income for December is:

A. $75,000
B. $45,000
C. $125,000
D. $65,000

Answer: B

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information. The budgeted cash disbursements for December are:

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information. The budgeted cash disbursements for December are:

A. $435,000
B. $385,000
C. $425,000
D. $465,000

Answer: A

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information. The budgeted cash receipts for December are:

The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information. The budgeted cash receipts for December are:

A. $125,000
B. $375,000
C. $530,000
D. $500,000

Answer: D

Porl Corporation makes and sells a single product called a YuteIf the total budgeted selling and administrative expense for October is $409,000, then how many Yutes does the company plan to sell in October?

Porl Corporation makes and sells a single product called a YuteIf the total budgeted selling and administrative expense for October is $409,000, then how many Yutes does the company plan to sell in October?

A. 19,700 units
B. 20,000 units
C. 20,500 units
D. 20,200 units

Answer: B

Porl Corporation makes and sells a single product called a Yute If the company has budgeted to sell 19,000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

Porl Corporation makes and sells a single product called a Yute If the company has budgeted to sell 19,000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

A. $387,100
B. $231,000
C. $169,100
D. $400,100

Answer: A

Porl Corporation makes and sells a single product called a Yute If the company has budgeted to sell 22,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Porl Corporation makes and sells a single product called a Yute If the company has budgeted to sell 22,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

A. $426,800
B. $231,000
C. $413,800
D. $195,800

Answer: A

Salge Inc. bases its manufacturing overhead budget on budgeted direct labor- hours. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for September should be:

Salge Inc. bases its manufacturing overhead budget on budgeted direct labor- hours. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for September should be:

A. $18.30
B. $14.10
C. $8.10
D. $22.20

Answer: D

Salge Inc. bases its manufacturing overhead budget on budgeted direct labor- hours.The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Salge Inc. bases its manufacturing overhead budget on budgeted direct labor- hours.The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A. $42,930
B. $54,060
C. $96,990
D. $117,660

Answer: C

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours.The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours.The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A. $75,050
B. $188,020
C. $94,800
D. $169,850

Answer: D

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be:

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be:

A. $14.30
B. $21.50
C. $9.50
D. $23.80

Answer: D

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:

A. $6.80
B. $11.80
C. $19.80
D. $24.80

Answer: D

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for November is 5,000 hours, then the total budgeted cash disbursements for November must be:

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for November is 5,000 hours, then the total budgeted cash disbursements for November must be:

A. $54,000
B. $52,000
C. $106,000
D. $86,000

Answer: D

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for October is 5,000 hours, then the total budgeted manufacturing overhead for October is:

Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year.If the budgeted direct labor time for October is 5,000 hours, then the total budgeted manufacturing overhead for October is:

A. $52,000
B. $106,000
C. $54,000
D. $86,000

Answer: B

The Yost Company makes and sells a single product, Product A.The company has budgeted to produce 20,000 units of Product A in June. The finished goods inventories on June 1 and June 30 were budgeted at 400 and 600 units, respectively. Budgeted direct labor cost for June is:

The Yost Company makes and sells a single product, Product A.The company has budgeted to produce 20,000 units of Product A in June. The finished goods inventories on June 1 and June 30 were budgeted at 400 and 600 units, respectively. Budgeted direct labor cost for June is:

A. $207,648
B. $168,000
C. $199,584
D. $201,600

Answer: D

The Yost Company makes and sells a single product, Product A.The budgeted direct labor cost per unit of Product A is:

The Yost Company makes and sells a single product, Product A.The budgeted direct labor cost per unit of Product A is:

A. $8.40
B. $7.00
C. $10.08
D. $9.60

Answer: C

The Yost Company makes and sells a single product, Product A.If the budgeted direct labor cost for May is $161,280, then the budgeted production of Product A for May is:

The Yost Company makes and sells a single product, Product A.If the budgeted direct labor cost for May is $161,280, then the budgeted production of Product A for May is:

A. 16,000 units
B. 19,200 units
C. 23,040 units
D. 16,800 units

Answer: A

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The total needs (i.e., production requirements plus desired ending inventory) of Material A for the month of May are:

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The total needs (i.e., production requirements plus desired ending inventory) of Material A for the month of May are:

A. 37,800 yards
B. 45,360 yards
C. 46,500 yards
D. 38,940 yards

Answer: C

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The desired ending inventory of Material A for the month of March is:

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The desired ending inventory of Material A for the month of March is:

A. 9,300 yards
B. 7,140 yards
C. 3,100 yards
D. 8,400 yards

Answer: B

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The total cost of Material A to be purchased in February is:

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:The total cost of Material A to be purchased in February is:

A. $45,200
B. $42,900
C. $39,440
D. $34,320

Answer: C

Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:The total cost of Jurislon to be purchased in August is:

Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:The total cost of Jurislon to be purchased in August is:

A. $233,625
B. $407,700
C. $214,200
D. $212,925

Answer: D

Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:The desired ending inventory of Jurislon for the month of September is:

Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:The desired ending inventory of Jurislon for the month of September is:

A. $5,550
B. $21,315
C. $6,090
D. $19,425

Answer: B

Young Enterprises has budgeted sales in units for the next five months as follows:The desired ending inventory for August is:

Young Enterprises has budgeted sales in units for the next five months as follows:The desired ending inventory for August is:

A. 540 units
B. 680 units
C. 720 units
D. 380 units

Answer: B

Young Enterprises has budgeted sales in units for the next five months as follows:The total number of units to be produced in July is:

Young Enterprises has budgeted sales in units for the next five months as follows:The total number of units to be produced in July is:

A. 7,740 units
B. 7,200 units
C. 7,020 units
D. 7,280 units

Answer: C

Young Enterprises has budgeted sales in units for the next five months as follows:The beginning inventory in units for September should be:

Young Enterprises has budgeted sales in units for the next five months as follows:The beginning inventory in units for September should be:

A. 460 units
B. 6,800 units
C. 540 units
D. 680 units

Answer: D

Hardy, Inc., has budgeted sales in units for the next five months as follows:The total number of units produced in July should be:

Hardy, Inc., has budgeted sales in units for the next five months as follows:The total number of units produced in July should be:

A. 7,240 units
B. 6,620 units
C. 6,300 units
D. 5,980 units

Answer: D

Hardy, Inc., has budgeted sales in units for the next five months as follows:The beginning inventory for September should be: The beginning inventory for September should be:

Hardy, Inc., has budgeted sales in units for the next five months as follows:The beginning inventory for September should be: The beginning inventory for September should be:

A. 940 units
B. 720 units
C. 1,640 units
D. 520 units

Answer: B

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 38,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted direct labor costs for June would be:

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The company plans to sell 38,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 600 and 100 units, respectively. Budgeted direct labor costs for June would be:

A. $562,500
B. $1,425,000
C. $1,406,250
D. $1,443,750

Answer: C

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The budgeted direct labor cost per unit of Product WZ would be:

LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.5 hours of direct labor at the rate of $15.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.The budgeted direct labor cost per unit of Product WZ would be:

A. $37.50
B. $6.00
C. $15.00
D. $17.50

Answer: A

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending: How much of the raw material should the company purchase during the year?

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending: How much of the raw material should the company purchase during the year?

A. 1,430,000 grams
B. 1,450,000 grams
C. 1,480,000 grams
D. 1,440,000 grams

Answer: A

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending: If the company plans to sell 670,000 units during the year, the number of units it would have to manufacture during the year would be:

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending: If the company plans to sell 670,000 units during the year, the number of units it would have to manufacture during the year would be:

A. 670,000 units
B. 720,000 units
C. 740,000 units
D. 620,000 units

Answer: B

Mitchell Company had the following budgeted sales for the last half of last year: What is the budgeted accounts receivable balance on December 1?

Mitchell Company had the following budgeted sales for the last half of last year: What is the budgeted accounts receivable balance on December 1?

A. $80,000
B. $140,000
C. $94,500
D. $131,300

Answer: C

Mitchell Company had the following budgeted sales for the last half of last year:Assume that the accounts receivable balance on July 1 was $75,000. Of this amount, $60,000 represented uncollected June sales and $15,000 represented uncollected May sales. Given these data, the total cashcollected during July would be:

Mitchell Company had the following budgeted sales for the last half of last year:Assume that the accounts receivable balance on July 1 was $75,000. Of this amount, $60,000 represented uncollected June sales and $15,000 represented uncollected May sales. Given these data, the total cashcollected during July would be:

A. $150,000
B. $235,000
C. $215,000
D. $200,000

Answer: D

The Kaufusi Company has the following budgeted sales: The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.The budgeted accounts receivable balance on May 31 would be:

The Kaufusi Company has the following budgeted sales:
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.The budgeted accounts receivable balance on May 31 would be:

A. $210,000
B. $212,000
C. $180,000
D. $242,000

Answer: D

The Kaufusi Company has the following budgeted sales: The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.: The budgeted cash receipts for July would be:

The Kaufusi Company has the following budgeted sales:
The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.: The budgeted cash receipts for July would be:

A. $400,000
B. $430,000
C. $435,000
D. $390,000

Answer: B

Brarin Corporation is a small wholesaler of gourmet food products:The difference between cash receipts and cash disbursements in December would be:

Brarin Corporation is a small wholesaler of gourmet food products:The difference between cash receipts and cash disbursements in December would be:

A. $17,000
B. $24,300
C. $41,300
D. $65,600

Answer: C

Brarin Corporation is a small wholesaler of gourmet food products: December cash disbursements for merchandise purchases would be:

Brarin Corporation is a small wholesaler of gourmet food products: December cash disbursements for merchandise purchases would be:

A. $283,200
B. $196,000
C. $288,000
D. $282,400

Answer: A

Brarin Corporation is a small wholesaler of gourmet food products: The cost of December merchandise purchases would be:

Brarin Corporation is a small wholesaler of gourmet food products: The cost of December merchandise purchases would be:

A. $272,000
B. $288,000
C. $196,000
D. $282,400

Answer: D

Brarin Corporation is a small wholesaler of gourmet food products: Expected cash collections in December are:

Brarin Corporation is a small wholesaler of gourmet food products: Expected cash collections in December are:

A. $360,000
B. $149,600
C. $198,000
D. $347,600

Answer: D

Diltex Farm Supply is located in a small town in the rural west: Retained earnings at the end of December would be:

Diltex Farm Supply is located in a small town in the rural west: Retained earnings at the end of December would be:

A. $132,500
B. $155,000
C. $196,500
D. $183,900

Answer: D

Diltex Farm Supply is located in a small town in the rural west: Accounts payable at the end of December would be:

Diltex Farm Supply is located in a small town in the rural west: Accounts payable at the end of December would be:

A. $65,000
B. $68,250
C. $130,000
D. $133,250

Answer: D

Diltex Farm Supply is located in a small town in the rural west: The accounts receivable balance, net of uncollectible accounts, at the end of December would be:

Diltex Farm Supply is located in a small town in the rural west: The accounts receivable balance, net of uncollectible accounts, at the end of December would be:

A. $82,000
B. $113,400
C. $60,000
D. $54,000

Answer: D

Diltex Farm Supply is located in a small town in the rural west: The cash balance at the end of December would be:

Diltex Farm Supply is located in a small town in the rural west: The cash balance at the end of December would be:

A. $116,900
B. $16,000
C. $100,900
D. $56,400

Answer: A

Diltex Farm Supply is located in a small town in the rural west:The net income for December would be:

Diltex Farm Supply is located in a small town in the rural west:The net income for December would be:

A. $40,400
B. $22,500
C. $47,500
D. $28,500

Answer: B

Diltex Farm Supply is located in a small town in the rural west: The difference between cash receipts and cash disbursements for December would be:

Diltex Farm Supply is located in a small town in the rural west: The difference between cash receipts and cash disbursements for December would be:

A. $17,900
B. $22,500
C. $40,400
D. $62,900

Answer: C

Diltex Farm Supply is located in a small town in the rural west: December cash disbursements for merchandise purchases would be:

Diltex Farm Supply is located in a small town in the rural west: December cash disbursements for merchandise purchases would be:

A. $136,500
B. $68,250
C. $133,250
D. $130,000

Answer: A

Diltex Farm Supply is located in a small town in the rural west: The cost of December merchandise purchases would be:

Diltex Farm Supply is located in a small town in the rural west: The cost of December merchandise purchases would be:

A. $133,250
B. $68,250
C. $130,000
D. $143,000

Answer: A

Diltex Farm Supply is located in a small town in the rural west: Expected cash collections in December are:

Diltex Farm Supply is located in a small town in the rural west: Expected cash collections in December are:

A. $59,400
B. $140,000
C. $199,400
D. $200,000

Answer: C

Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 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 December selling and administrative expense budget should be:

Lunderville Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 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 December selling and administrative expense budget should be:

A. $70,720
B. $54,080
C. $64,000
D. $9,920

Answer: C

The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budgeted fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 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 June selling and administrative expense budget should be:

The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budgeted fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 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 June selling and administrative expense budget should be:

A. $100,650
B. $106,700
C. $5,500
D. $95,150

Answer: A

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A. $59,080
B. $62,720
C. $19,600
D. $39,480

Answer: A

Avitia Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 3,700 direct labor-hours will be required in September. The variable overhead rate is $5.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $48,100 per month, which includes depreciation of $5,550. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for September should be:

Avitia Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 3,700 direct labor-hours will be required in September. The variable overhead rate is $5.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $48,100 per month, which includes depreciation of $5,550. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for September should be:

A. $5.70
B. $13.00
C. $18.70
D. $17.20

Answer: C

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

A. $8.60
B. $27.30
C. $23.80
D. $18.70

Answer: B

Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,440 per month, which includes depreciation of $8,910. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A. $102,870
B. $11,340
C. $91,530
D. $111,780

Answer: A

Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

Hagos Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.84 direct labor-hours. The direct labor rate is $9.40 per direct labor-hour. The production budget calls for producing 2,100 units in June and 1,900 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

A. $15,792.00
B. $15,002.40
C. $16,581.60
D. $31,584.00

Answer: D

Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 6,900 units in November. 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?

Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 6,900 units in November. 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?

A. $122,752.00
B. $120,736.00
C. $120,881.60
D. $122,606.40

Answer: A

Prestwich Company has budgeted production for next year as follows: Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

Prestwich Company has budgeted production for next year as follows: Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:

A. 82,500 pounds
B. 165,000 pounds
C. 200,000 pounds
D. 205,000 pounds

Answer: B

The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

A. $6,000 increase
B. $10,000 decrease
C. $22,000 decrease
D. $15,000 increase

Answer: A

Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Berol Company's production requirement in units of finished product for the three-month period ending September 30 is:

Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Berol Company's production requirement in units of finished product for the three-month period ending September 30 is:

A. 712,025 units
B. 630,500 units
C. 664,000 units
D. 665,720 units

Answer: D

Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be:

Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh Company's production of Product W for the month of April should be:

A. 60,000 units
B. 65,000 units
C. 75,000 units
D. 66,000 units

Answer: B

The following data have been taken from the budget reports of Brandon company, a merchandising company. Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:

The following data have been taken from the budget reports of Brandon company, a merchandising company. Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:

A. $140,000
B. $254,000
C. $200,000
D. $248,000

Answer: B

Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:

Budgeted sales in Allen Company over the next four months are given below: Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be:

A. $138,000
B. $133,500
C. $120,000
D. $103,500

Answer: B

Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:

Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:

A. $138,000
B. $122,000
C. $119,000
D. $108,000

Answer: C

Which of the following is not correct regarding the manufacturing overhead budget?

Which of the following is not correct regarding the manufacturing overhead budget?

A. Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead.
B. Manufacturing overhead costs should be broken down by cost behavior.
C. The manufacturing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor.
D. A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budget.

Answer: A

The budgeted amount of raw materials to be purchased is determined by:

The budgeted amount of raw materials to be purchased is determined by:

A. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule.
B. subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule.
C. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
D. adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials.

Answer: C

Budgeted production needs are determined by:

Budgeted production needs are determined by:

A. adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total.
B. adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total.
C. adding budgeted sales in units to the desired ending inventory in units.
D. deducting the beginning inventory in units from budgeted sales in units.

Answer: A

Which of the following statements is not correct?

Which of the following statements is not correct?

A. The sales budget is the starting point in preparing the master budget.
B. The sales budget is constructed by multiplying the expected sales in units by the sales price.
C. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period.
D. The cash budget must be prepared prior to the sales budget because managers want to know the expected cash collections on sales made to customers in prior periods before projecting sales for the current period.

Answer: D