MANAGERIAL ACCOUNTING EXAM WITH
QUESTIONS AND VERIFIED ANSWERS ||
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A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February, 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales.If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January, 2013 in order for the company to meet its goals? - ANSWER-214,800 units
Strand Company is planning to sell 400 buckets and produce 380 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor.Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs.Strand has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March? - ANSWER-$2,850
At January 1, 2013, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the first quarter of 2013 with a 12% increase in sales each quarter. Deer's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2013? -
ANSWER-$1,881,600
The following credit sales are budgeted by Terra Co.: 1 / 4
January $204,000 February 300,000 March 420,000 April 360,000
The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is - ANSWER-$360,000.
Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?
- ANSWER-160,800
Dart, Inc. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The
following budget data are available:
Variable Cost Per Unit Sold Monthly Fixed Cost
Sales commissions 0.60 6,000
Shipping 1.20
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Advertising 0.30
Executive salaries 40,000
Depreciation on office equipment 8,000
Other 0.35 28,000
Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted selling and administrative expenses (including variable and fixed) for October? - ANSWER-$101,600
(0.6+1.2+0.3+0.35)*8000+6000+40000+8000+28000=$101,600
Dart, Inc. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The
following budget data are available:
Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $6,000 Shipping 1.20 Advertising 0.30 Executive salaries 40,000 Depreciation on office equipment 8,000 Other 0.35 28,000
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Expenses are paid in the month incurred. If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October? - ANSWER-$19,600
The following information is taken from the production budget for the first quarter:
Beginning inventory in units 1,200 Sales budgeted for the quarter 456,000 Production capacity in units 472,000
How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter? - ANSWER-
458,000
The direct materials budget shows:
Units to be produced 3,000 Total pounds needed for production 9,000 Total materials required 9,900
What are the direct materials per unit? - ANSWER-3.0 pounds
The following information is taken from the production budget for the first quarter:
Beginning inventory in units 1,200
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