13. Bean Manufacturing reported the following information for 2012:

October November December

Budgeted purchases $180,000 $192,000 $216,000

Operating expenses are: Salaries $75,000 Depreciation $30,000 Rent $15,000 Utilities, 21,000

Operating expenses are paid during the month incurred.

Accounts payable is used only for inventory acquisitions.

How much is the budgeted amount of cash to be paid for operating expenses in november?

A. $141,000

B. $333,000

C. $111,000

D $303,000

16. Correy Company reported the following information for 2012:

October November December

Budgeted sales $230,000 $220,000 $270,000

Budgeted purchases $120,000 $128,000 $144,000

Cost of goods sold is 35% of sales.

Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.

Accounts payable is used only for inventory acquisitions.

How much is the budgeted balance for Accounts payable at October 31, 2012?

A. $72,000

B. $102,000

C. $51,200

D. $48,000

17. Taffy Industries is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Taffy insudstries requires a 10% rate of return.

Present value of an annuity of 1

Period.... 8%....9%.....10%....11%....12%.....15%.....

....6....4.623...4.486..4.355..4.231...4.111...3.784

What is the approximate net present value of this investment?

A. $5,496

B. $3,584

C. $1,772

D. $27,600

18. A department has budgeted monthly manufacturing overhead cost of $180,000 plus $3 per direct labor hour. If a flexible budget reflects $348,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was

A. 176.000 direct labor hours

B. 56,000 direct labor hours

C. 116,000 direct labor hours

D. Cannot be determined from the information provided.

19. Cheery China Manufacturing Company reported the following year-end information:

Beginning work in process inventory $35000

Beginning raw materials inventory $18000

Ending work in process inventory 38000

Ending raw materials inventory 15000

Raw materials purchased 560000

Direct labor 180000

manufacturing overhead 75000

How much is Cheery china manufacturing's total cost of work in process for the year?

A. 815000

B. 853000

C. 818000

D. 563000

26.Justin industries produces three versions of tires: supreme, advanced, and basic. A condensed segmented income statement for a recent period follows:

Supreme advance basic total

Sales $1,000,000 $400,000 $130,000 #1,530,000

Variable expenses 650,000 280,000 116,000 1,046,000

Contribution margin 350,000 120,000 14,000 484,000

Fixed expenses 150,000 70,000 44,000 264,000

Net income (loss) $200,000 $50,000 $(30,000) $220,000

A. $206,000

B. $280,000

C. $210,000

D. $250,000