Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. For February, sales revenue is $576,000, sales commissions are 7% of sales, the sales manager's salary is $93,200, advertising expenses are $93,800, shipping expenses

1. For February, sales revenue is $576,000, sales commissions are 7% of sales, the sales manager's salary is $93,200, advertising expenses are $93,800, shipping expenses total 4% of sales, and miscellaneous selling expenses are $2,400 plus of 1% of sales. Total selling expenses for the month of February are

a.$255,640

b.$252,760

c.$229,720

d.$189,400

2. Consider Derek's budget information: materials to be used, $64,000; direct labor, $201,500; factory overhead, $403,000; work in process inventory on January 1, $189,500; and work in progress inventory on December 31, $192,000. What is the budgeted cost of goods manufactured for the year?

a.$858,000

b.$192,000

c.$668,500

d.$666,000

3. Use the information below for Finch Company to answer the question that follow.

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

April May June
Manufacturing costs (1) $158,200 $200,000 $207,200
Insurance expense (2) 800 800 800
Depreciation expense 1,820 1,820 1,820
Property tax expense (3) 500 500 500

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $800 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are

a.$121,050

b.$139,625

c.$118,650

d.$158,200

4. The production budgets are used to prepare which of the following budgets?

a.sales in units

b.operating expenses

c.sales in dollars

d.direct materials purchases, direct labor cost, and factory overhead cost

5. Use the information below for Nuthatch Corporation to answer the question that follow.

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of businessSeptember, October, and Novemberare $248,000, $301,000, and $410,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in September from accounts receivable are estimated to be

a.$248,000

b.$138,880

c.$297,600

d.$173,600

6. Miller and Sons' static budget for 9,600 units of production includes $35,200 for direct materials, $51,700 for direct labor, variable utilities of $6,800, and supervisor salaries of $16,100. A flexible budget for 13,100 units of production would show

Round your final answer to the nearest dollar. Do not round interim calculations.

a.total variable costs of $109,800

b.direct materials of $48,033, direct labor of $70,549, utilities of $9,279, and supervisor salaries of $19,320

c.the same cost structure in total

d.direct materials of $48,033, direct labor of $70,549, utilities of $9,279, and supervisor salaries of $16,100

7. Production and sales estimates for March for Robin Co. are as follows:

Estimated inventory (units), March 1 17,200
Desired inventory (units), March 31 19,400
Expected sales volume (units):
Area M 7,000
Area L 9,400
Area O 7,100
Unit sales price $16

The number of units expected to be manufactured in March is

a.60,100

b.25,700

c.42,900

d.23,500

8. Woodpecker Co. has $300,000 in accounts receivable on January 1. Budgeted sales for January are $877,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a.$600,960

b.$1,301,600

c.$1,001,600

d.$801,280

9. Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 675,000 units, estimated beginning inventory is 110,000 units, and desired ending inventory is 90,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.

Material A: 0.50 lb. per unit @ $0.50 per pound Material B: 1.00 lb. per unit @ $1.97 per pound Material C: 1.20 lb. per unit @ $0.98 per pound The dollar amount of Material A used in production during the year is

a.$163,750

b.$770,280

c.$168,750

d.$1,290,350

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Just In Time Accounting How To Decrease Costs And Increase Efficiency

Authors: Steven M. Bragg

3rd Edition

0470403721, 978-0470403723

More Books

Students also viewed these Accounting questions