Courington Detailing's cost formula for its materials and supplies is $1,880 per month plus $7 per vehicle. For the month of August, the company planned for activity of 83 vehicles, but the actual level of activity was 48 vehicles. The actual materials and supplies for the month was $2,350.

The materials and supplies in the flexible budget for August would be closest to:

Multiple Choice

• $2,216

• $2,461

• $1,351

• $2,350

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	30,000	80,000
Raw material (grams)	60,000	50,000

Each unit of finished goods requires 2 grams of raw material. The company plans to sell 650,000 units during the year.

The number of units the company would have to manufacture during the year would be:

Garrison 16e Rechecks 2017-10-03

Multiple Choice

• 700,000 units

• 650,000 units

• 590,000 units

• 730,000 units

Raider Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the departments operations in January.

	Units				Percent Complete with Respect to Conversion
Beginning work in process inventory		8,300				10	%
Transferred in from the prior department during January		70,000
Completed and transferred to the next department during January		69,800
Ending work in process inventory		8,500				80	%

The Molding Departments cost per equivalent unit for conversion cost for January was $3.25. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?

Multiple Choice

• $22,100.00

• $22,112.70

• $5,525.00

• $27,625.00

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

• Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
• Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
• The cost of goods sold is 80% of sales.
• The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $21,100.
• Monthly depreciation is $21,000.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	25,000
Accounts receivable		77,000
Merchandise inventory		162,400
Property, plant and equipment, net of $624,000 accumulated depreciation		1,026,000
Total assets	$	1,290,400
Liabilities and Stockholders' Equity
Accounts payable	$	239,000
Common stock		740,000
Retained earnings		311,400
Total liabilities and stockholders' equity	$	1,290,400

Accounts payable at the end of December would be:

Garrison 16e Rechecks 2017-11-08

Multiple Choice

• $74,400

• $117,600

• $248,000

• $192,000

Chavin Company had the following results during August: net operating income, $230,000; turnover, 5; and ROI 17%. Chavin Company's average operating assets were:

Multiple Choice

• $1,150,000

• $46,000

• $1,352,941

• $39,100