2 BUSI1093-E1 FUNDAMENTALS OF FINANCIAL AND MANAGEMENT ACCOUNTING (N11137) 2018/2019 EXAMINATIONS Section A: 20 multiple-choice questions (30% OF EXAM) Answer all questions Each question in this section is worth 1.5 marks Only ONE answer should be selected for each question 2/11 The following information relates to questions 1-3 Greenwood Ltd makes internal silk curtains for wedding marquees and has budgeted production activity for the final quarter of 2021 as detailed below. October November December Total Budgeted production in units 10,500 12,000 9,000 31,500 Eight metres of silk is required for each curtain. Greenwood Ltd has a policy of maintaining ending inventory of silk at the end of each month to equal 25% of the next month's production needs. Silk inventory at the end of September follows the ending inventory policy and budgeted production for January 2022 is 4,000 curtains. Silk is purchased for 30 per metre. 50% of purchases will be paid for in the month of purchase and 50% in the month after purchase. 1. Budgeted purchases of silk for the December would be: 72,000 metres (b) 80,000 metres (c) 62,000 metres (d) 82,000 metres (a) 2. Budgeted ending inventory for silk for October would be: (a) 18,000 metres (b) 21,000 metres (c) 24,000 metres (d) 8,000 metres 3. The amount paid for purchases in November is: (a) 2,700,000 (b) 2,655,000 (c) 2,610,000 2,280,000