6. Jim's 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy $3,000 cash. Julie estimated the following costs for the two a 5-year-old used Honda Civic instead for cars Acquisition cost Repairs Annual operating costs Seo Prizm $15,000 S 3,000 $3,000 (Gas, maintenance, insurance) S 2,280 $2,100 The cost NOT relevant for this decision is the: a. acquisition cost of the Geo Prizm b. acquisition cost of the Honda Civic c. repairs to the Geo Prizm d. annual operating costs of the Honda Civic 7. A good budgeting system forces managers to examine the business as they plan, so they a. detect inaccurate historical records b. c. d. set specific expectations against which actual results can be compared complete the budgeting task on time get promoted for doing a good job 8. DeArmond Corporation has budgeted sales of 18,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 900 units. How many units should be produced next year? a. 21,900 units b. 20,100 units c. 15,900 units d. 18,000 units 9. What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor? a. Work-in-Proces b. Work-in-Process c. Manufacturing Overhead 50,000 53,000 3,000 Raw Materials 50,000 Raw Materials 53,000 Raw Materials 50,000 Work-in-Process 53,000 d. Work-in-Process 50,000 Manufacturing Overhead 3,000 Raw Materials 53,000