QUESTION 1

1. On the Direct Materials Budget, the total number of direct materials needed is computed as:

   	a.	Quantity needed for production + desired ending inventory of DM - beginning inventory of DM
   	b.	Units to be produced + desired ending inventory of DM - beginning inventory of DM
   	c.	Quantity needed for production - desired ending inventory of DM + beginning inventory of DM
   	d.	Units to be produced - desired ending inventory of DM + beginning inventory of DM

2.5 points

QUESTION 2

1. Loyal Pet Company expects to sell 5,000 dog treats in Januray, and 9,000 treats in February for $3 each. What would be the total Sales Revenue reflected in the Sales Budget for those months?

   	a.	January $27,000; February $15,000
   	b.	January $15,000; February $27,000
   	c.	January $3,000; February $1,667
   	d.	January $1,667; February $3,000

2.5 points

QUESTION 3

1. Kuttrit Company has beginning inventory of 15,000 units, and expected Sales of 23,000 units. If the desired ending inventory is 18,000 units, how many units should be produced?

   	a.	10,000
   	b.	20,000
   	c.	56,500
   	d.	26,000

2.5 points

QUESTION 4

1. Totts company produces Jump Ropes. It has the following Sales Projections for the upcoming year:

   First Quarter Budgeted Jump Rope Sales in Units: 25,000

   Second Quarter Budgeted Jump Rope Sales in Units: 80,000

   Third Quarter Budgeted Jump Rope Sales in Units: 16,000

   Fourth Quarter Budgeted Jump Rope Sales in Units: 26,000

   Inventory at the beginning of the year was 4,400 Jump Ropes. Totts Company wants to have 10% of the next quarter's sales in units on hand at the end of each quarter. How many Jump Ropes should the company produce during the first quarter?

   	a.	25,000
   	b.	20,600
   	c.	28,600
   	d.	37,400

2.5 points

QUESTION 5

1. Jackson Industries has collected the following data for one of its products:

   Direct Materials Standard (6 pounds per unit @ 55 cents per pound)

   Actual Direct Materials Purchased was 38,000 pounds

   Actual Direct Materials Used was 35,000 pounds

   Actual Price paid per pound was 60 cents

   How much is the Direct Materials Price Variance?

   	a.	$1,900 (Unfavorable)
   	b.	$1,750 (Favorable)
   	c.	$1,900 (Favorable)
   	d.	$1,750 (Unfavorable)