Chapter 10 – Final Exam Practice Questions
final quiz代考推荐 Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month’s sales.
1.For next year Flexsteel Company has budgeted sales of 40,000 units, target ending finished goods inventory of 2,000 units, and a beginning finished goods inventory of 1,200 units. All other inventories are zero. How many units should be produced?
a.39,200 units
b.42,800 units
c.41,800 units
d.40,000 units
e.40,800 units
2.Randy Company has budgeted sales of 12,000 units, target ending finished good inventory of 2,000 units, and a beginning finished goods inventory of 600 units. How many units should be produced?
a.13,400 units
b.7,250 units
c.9,400 units
d.10,600 units
e.14,600 units
Use the information below to answer the following two question(s)
Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 2007
is as follows:
Month Sales
January 10,000
February 14,000
March 13,000
Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month’s sales. April 2007 sales are expected to total 16,000 units.
3.What will be the number of chests produced in January 2007? final quiz代考推荐
a.11,200 chests
b.14,700 chests
c.14,200 chests
d.13,000 chests
e.8,800 chests
4.How many chests will be produced in the first quarter of 2007? final quiz代考推荐
a.44,800 chests
b.37,000 chests
c.48,400 chests
d.38,800 chests
e.41,800 chests
5.Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000.
Cash used to pay accounts payable for the month totaled:
a.$148,600
b.$156,000
c.$240,000
d.$152,000
e.$244,000
Use the information below to answer the following two question(s)
Historically, the cash collection of sales has been as follows:
65 percent of sales collected in month of sale,
25 percent of sales collected in month following sale,
8 percent of sales collected in second month following sale, and
2 percent of sales are uncollectible.
6.Cash collections for September are
a.$161,400
b.$143,000
c.$199,000
d.$240,000
e.$204,000
7.What is the ending balance of accounts receivable for September assuming uncollectible balance is written off after the second month?
a.$89,800
b.$88,000
c.$97,000
d.$199,000
e.$93,000
8.Cash collections for October are
a.$176,400
b.$174,000
c.$117,000
d.$199,000
e.$184,800
Cash collections for October:
– 65% x 180,000 = 117,000
– 25% x 220,000 = 55,000
– 8% x 160,000 = 12,800
Use the following information to answer the next two questions:
Noel Enterprises has budgeted sales in units for the next five months as follows:
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month’s sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year.
9.The total number of units to be produced in July is: final quiz代考推荐
Note: Enter only the numerical value of your answer. Do not include with your answer the word “units”.
10.The desired ending inventory for August is:
Note: Enter only the numerical value of your answer. Do not include with your answer the word “units”.
Use the following information to answer the next two questions:
Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
Each unit of finished goods requires 3 grams of raw material. The company plans to sell 880,000 units during the year.
11.The number of units the company would have to manufacture during the year would be:
Note: Enter only the numerical value of your answer. Do not include with your answer the word “units”.
12.How much of the raw material should the company purchase during the year?
Note: Enter only the numerical value of your answer. Do not include with your answer the word “grams”.
13.Parlee Company’s sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data:
What would be the budgeted total cash receipts in April?
a.$27,230.
b.$36,230.
c.$38,900.
d.$47,900.
14.The Waverly Company has budgeted sales for next year as follows:
The ending inventory of finished goods for each quarter should equal 25% of the next quarter’s budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. What should be the scheduled production for the third quarter?
a.13,500 units.
b.17,500 units.
c.18,500 units.
d.22,000 units.
15.Looker Hats is planning to sell 1,000 felt hats, and 800 will be produced during June. Each hat requires.75 metres of felt and 1/2 hour of direct labour. Felt costs $5.00 per metre and employees of the company are paid $15 per hour. How much is the total amount of budgeted direct labour for June?
a) $9,750
b) $45,000
c) $6,000
d) $7,500
16.Leak Company sells only on credit. It reported the following information for 2016: final quiz代考推荐
Customer amounts on account are collected 45% in the month of sale and 55% in the following month.How much is the November 30, 2016 budgeted Accounts Receivable?
a) $467,500
b) $382,500
c) $827,500
d) $528,000
17.Sundy Company provided the following information for the month of August:
Beginning cash balance $ 7,000
Cash receipts 549,000
Cash disbursements 523,000
Sundy borrowed $15,000 and repaid $16,000 during the month. How much will Sundy’s report on its budgeted balance sheet at August 31 for cash?
a) $32,000
b) $33,000
c) $26,000
d) $25,000
