1. When finished goods are sold, the is an increase in which of the following accounts?

a. COGS b. cost of goods manufactured. c. finished goods inventory d. work-in process d. work-in process

2. Sales: $19,000, beginning finished goods inventory: $12,000, ending finished goods inventory: $8,000, COGS: $9,000. Cost of goods manufactured during this period equals:

a.$11,000 b.$10,000 c. $6,000 d. $5,000

3. ABC company estimated overhead cost for the coming year will be $15,000 and an estimated 5,000 DL will be used as the allocation base. The overhead cost applied by MBA to one of its jobs if the jobs require direct labor hours to complete would be:

a. $150 b. $30 c. $50 d.$15

4. The purpose of reporting the statement of cost of goods manufactured is to?

a. assist retail companies to calculate the cost of goods transferred to finished goods inventory during the period

b. separate costs by behavior

c. calculate contribution margin

d. assist manufacturing companies to calculate the cost of goods completed and transferred into finished good inventory during the period

5. MBA company: sales revenue: $779,000, variable costs: $506,000 , fixed costs: $216,000

If sales volume increases by 10%:

A. operating income will increase by $50,600

B. contribution margin will increase by $27,300

C. fixed expenses will increase by $ 21, 600

D. contribution margin will increase by$ 77,900

6. Which of the following statements is true if the variable cost per unit increases while the sales price per unit remains constant?

a. breakeven point decreases b. the breakeven point increases.

c. breakeven points remain the same d. the contribution margin increases

7. Budgets based on the actual level of output, rather than the output originally budgeted, are called?

Activity budgets b. flexible budgets. C. operating budgets d. static budgets

8.

MBA company is preparing cash budget for the third quarter. The cash balance in June 30 was $32,000.

What amount should be shown in the cash budgets cash balance at the end of July?

	July	August	September
Cash collections	$53,000	$51,000	$56,000
Cash payments :
Purchases of direct materials	$20,000	$20,000	$20,000
Operating expenses	$32,000	$20,000	$23,000
Fed & state taxes	$16,000	$7,000	$9,000

What amount should be shown in the cash budgets cash balance at the end of July?