Question 1

The estimated finished goods inventory balance at the end of May is closest to:

Accepted Answer

A) $102,676 
B) $111,986 
C) $26,999 
D) $129,675 
A) $102,676 
B) $111,986 
C) $26,999 
D) $129,675

Question 2

Sill Corporation makes one product.Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and 13,400 units, respectively.The ending finished goods inventory equals 20% of the following month's sales.The ending raw materials inventory equals 40% of the following month's raw materials production needs.Each unit of finished goods requires 5 pounds of raw materials.If 61,000 pounds of raw materials are required for production in March, then the budgeted raw material purchases for February is closest to:

Accepted Answer

A)  58,900 pounds 
B)  104,900 pounds 
C)  57,500 pounds 
D)  81,900 pounds 
A)  58,900 pounds 
B)  104,900 pounds 
C)  57,500 pounds 
D)  81,900 pounds

Question 3

Arciba Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The direct labor budget indicates that 7,400 direct labor-hours will be required in January.The variable overhead rate is $9.50 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $130,980 per month, which includes depreciation of $10,360.All other fixed manufacturing overhead costs represent current cash flows.The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for January should be:

Accepted Answer

A) $27.20 
B) $25.80 
C) $17.70 
D) $9.50 
A) $27.20 
B) $25.80 
C) $17.70 
D) $9.50

Question 4

When preparing a direct materials budget, the required purchases of raw materials in units equals:

Accepted Answer

A) raw materials needed to meet the production schedule + desired ending inventory of raw materials ? beginning inventory of raw materials. 
B) raw materials needed to meet the production schedule ? desired ending inventory of raw materials ? beginning inventory of raw materials. 
C) raw materials needed to meet the production schedule ? desired ending inventory of raw materials + beginning inventory of raw materials. 
D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials. 
A) raw materials needed to meet the production schedule + desired ending inventory of raw materials ? beginning inventory of raw materials. 
B) raw materials needed to meet the production schedule ? desired ending inventory of raw materials ? beginning inventory of raw materials. 
C) raw materials needed to meet the production schedule ? desired ending inventory of raw materials + beginning inventory of raw materials. 
D) raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory of raw materials.

Question 5

The estimated unit product cost is closest to:

Accepted Answer

A) $20.80 
B) $87.80 
C) $79.80 
D) $100.60 
A) $20.80 
B) $87.80 
C) $79.80 
D) $100.60

Question 6

The desired ending inventory for August is:

Accepted Answer

A) 530 units 
B) 670 units 
C) 710 units 
D) 370 units 
A) 530 units 
B) 670 units 
C) 710 units 
D) 370 units

Question 7

The BRS Corporation makes collections on sales according to the following schedule:   The following sales have been budgeted:   Budgeted cash collections in June would be:

Accepted Answer

A) $137,000 
B) $85,000 
C) $45,000 
D) $123,000 
A) $137,000 
B) $85,000 
C) $45,000 
D) $123,000

Question 8

The estimated selling and administrative expense for August is closest to:

Accepted Answer

A) $70,000 
B) $57,970 
C) $16,950 
D) $86,950 
A) $70,000 
B) $57,970 
C) $16,950 
D) $86,950

Question 9

The estimated direct labor cost for February is closest to:

Accepted Answer

A) $253,460 
B) $456,000 
C) $658,996 
D) $28,652 
A) $253,460 
B) $456,000 
C) $658,996 
D) $28,652

Question 10

The budgeted sales for February is closest to:

Accepted Answer

A) $1,474,400 
B) $1,290,100 
C) $1,164,000 
D) $970,000 
A) $1,474,400 
B) $1,290,100 
C) $1,164,000 
D) $970,000

Question 11

If 41,920 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:

Accepted Answer

A) $57,056 
B) $43,712 
C) $44,480 
D) $70,400 
A) $57,056 
B) $43,712 
C) $44,480 
D) $70,400

Question 12

If the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to:

Accepted Answer

A) $55,108 
B) $50,152 
C) $4,956 
D) $5,548 
A) $55,108 
B) $50,152 
C) $4,956 
D) $5,548

Question 13

The estimated finished goods inventory balance at the end of February is closest to:

Accepted Answer

A) $335,160 
B) $245,385 
C) $281,295 
D) $89,775 
A) $335,160 
B) $245,385 
C) $281,295 
D) $89,775

Question 14

The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours.The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month.The variable overhead rate is $4.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $82,360 per month, which includes depreciation of $16,820.All other fixed manufacturing overhead costs represent current cash flows.
Required:
a.Determine the cash disbursements for manufacturing overhead for February.Show your work!
b.Determine the predetermined overhead rate for February.Show your work!

Accepted Answer

@#IMG-DLM&_TB2627_00

Question 15

The desired beginning inventory for June is:

Accepted Answer

A) $42,000 
B) $35,000 
C) $50,000 
D) $38,000 
A) $42,000 
B) $35,000 
C) $50,000 
D) $38,000

Question 16

If the company has budgeted to sell 12,000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

Accepted Answer

A) $237,000 
B) $485,400 
C) $248,400 
D) $478,400 
A) $237,000 
B) $485,400 
C) $248,400 
D) $478,400

Question 17

The production budget is typically prepared before the direct materials budget.

Accepted Answer

A) True 
 B)False

Question 18

Retained earnings at the end of December would be:

Accepted Answer

A) $289,600 
B) $296,000 
C) $236,400 
D) $203,500 
A) $289,600 
B) $296,000 
C) $236,400 
D) $203,500

Question 19

The direct labor budget begins with the required production in units from the production budget.

Accepted Answer

A) True 
 B)False

Question 20

Gusler Corporation makes one product and has provided the following information:   The estimated cost of goods sold for May is closest to:

Accepted Answer

A) $807,500 
B) $256,500 
C) $646,000 
D) $551,000 
A) $807,500 
B) $256,500 
C) $646,000 
D) $551,000

The estimated finished goods inventory balance at the end of May is closest to:

When preparing a direct materials budget, the required purchases of raw materials in units equals:

The estimated unit product cost is closest to:

The desired ending inventory for August is:

The BRS Corporation makes collections on sales according to the following schedule: The following sales have been budgeted: Budgeted cash collections in June would be:

The estimated selling and administrative expense for August is closest to:

The estimated direct labor cost for February is closest to:

The budgeted sales for February is closest to:

If 41,920 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:

If the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to:

The estimated finished goods inventory balance at the end of February is closest to:

The desired beginning inventory for June is:

If the company has budgeted to sell 12,000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

The production budget is typically prepared before the direct materials budget.

Retained earnings at the end of December would be:

The direct labor budget begins with the required production in units from the production budget.

Gusler Corporation makes one product and has provided the following information: The estimated cost of goods sold for May is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 8: Master Budgeting

The estimated finished goods inventory balance at the end of May is closest to:

When preparing a direct materials budget, the required purchases of raw materials in units equals:

The estimated unit product cost is closest to:

The desired ending inventory for August is:

The BRS Corporation makes collections on sales according to the following schedule: The following sales have been budgeted: Budgeted cash collections in June would be:

The estimated selling and administrative expense for August is closest to:

The estimated direct labor cost for February is closest to:

The budgeted sales for February is closest to:

If 41,920 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to:

If the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to:

The estimated finished goods inventory balance at the end of February is closest to:

The desired beginning inventory for June is:

If the company has budgeted to sell 12,000 Yutes in December, then the budgeted total cash disbursements for selling and administrative expenses for December would be:

The production budget is typically prepared before the direct materials budget.

Retained earnings at the end of December would be:

The direct labor budget begins with the required production in units from the production budget.

Gusler Corporation makes one product and has provided the following information: The estimated cost of goods sold for May is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters