quiz

NO.	QUESTIONS	ANSWERS
1.	Reid company is budgeting production of 100,000 units of product R for the month of September this year. Production of one unit of product R requires three units of the material B for material B. the actual inventory units at September 1 were 22,000 units and budgeted inventory units at September 30 are 24,000. How many units of material B is Reid planning to purchase during September? 328,000 302,000 298,000 272,000 250,000
2.	XYZ has forecast sales for the next three months as follows: January 10,000 units; February 15,000 units; and march 20,000 units. Inventory as of January 1 is expected to be 2,000 units. Ending inventories should equal 25% of the coming months sales needs. How many units should be produced in February? 13,750 units 15,000 units 16,250 units 18,000 units None of the above
3.	Acme company has observed its accounts receivable collection pattern to be as follows: 40% in the month of sale. 45% in the month following the sale and 13% in the second month following the sale. Sales for the last three months of the year were as follows: October $300,000; November $450,000 and December $625,000. Sales for January are budgeted to be $375,000. What are the budgeted cash collections for January? $375,000 $489,750 $495,750 $625,000 None of the above
4.	Scooter corp. has forecast sales as follows: 30 July 30,000 units; August, 35,000units and September 40,000 units. Finished goods inventory as of July 1 is forecast to be 10,000 units. Finished goods inventory of 20% of the following months sales needs is desired. Each finished unit requires 5 pounds of raw material. The raw materials inventory level on July 1 was 202,500 pounds and the expected raw materials inventory level on July 31 will be 270,000 pounds. How many pounds of raw material should be purchased in July? 270,000 pounds 40,500 pounds 135,000 pounds 202,500 pounds None of the above
5.	Which of the following items would have to be included for a company preparing a schedule of cash receipts and disbursements for the calendar year 2019? The annual depreciation for 2019 A purchase order issued in December 2019 for items to be delivered in February 2020 Dividends declared in November 2019, to be paid in January 2020 to shareholders of record as of December 2019. The amounts of uncollectible customer accounts for 2019 Funds borrowed from a bank on a note payable taken out in June 2018 with an agreement to pay the principal and all of the interest owed in December 2019