1.Creditors accounts are settled 35% in the month of purchase and 65% in the month following the purchase. If credit purchases are $20,000 in January and $26,000 in February how much cash is paid to creditors in February?

a.$23,900

b.$20,000

c.$22,100

d.$26,000

e.$46,000

2.Network Company Pty Ltd made the following estimates for the three months ending 31 March. This is Network Company's first period of operation and their starting cash balance is $5 000.

Estimates:

Cash receipts from sales

$600 000

Cash payments for expenses

260 000

Purchase of motor vehicle ($10 000 will not be paid until April)

40 000

Depreciation of motor vehicle

8 000

Repayment of bank loan

50 000

What is the estimated cash balance at 31 March?

a.$252 000 surplus

b.$265 000 deficit

c.$252 000 deficit

d.$265 000 surplus

e.$260 000 surplus

3.Kent Ltd produces printing machines.The accountant uses a job cost system and has calculated the following budgeted overhead rates:overhead rate based on direct labour hours is $7 per DLH; overhead rate based on machine hours is $26 per MH.

Kent Ltd completed Job CK23 which required $500 of direct materials, 24 direct labour hours at a rate of $8/DLH, and 8 machine hours.

What would be the cost of Job CK23 if Kent Ltd uses MH as cost driver?

a.$668

b.$860

c.$900

d.$708

e.$692

4.Kent Ltd produces printing machines.The accountant uses a job cost system and has calculated the following budgeted overhead rates:overhead rate based on direct labour hours is $7 per DLH; overhead rate based on machine hours is $26 per MH

Kent Ltd completed Job CK23 which required $500 of direct materials, 24 direct labour hours at a rate of $8/DLH, and 8 machine hours.

What would be the cost of Job CK23 if Kent Ltd uses DLH as cost driver?

a.$692

b.$708

c.$668

d.$900

e.$860

5.If McLeod Ltd's selling price is $50 per unit, fixed costs are $499 800, and the contribution margin ratio is 0.34. The break-even in sales dollars (rounded to the nearest dollar) is:

a.$1 470 000

b.$757 273

c.$499 800

d.$169 932

e.Unable to be determined from the information given