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ACCT1511-Accounting and Financial Management 1B -

My courses U C A A Online Quizzes Quiz 6 - topics 11 & 12

Started on
State
Completed on
Time taken

Question 1
Correct

Monday, 27 October 2014, 6:49 PM

Finished
Monday, 27 October 2014, 7:10 PM
20 mins 44 secs

Marks

9.00/10.00

Grade

4.50 out of a maximum of 5.00 (90%)

The ABC Company sells a product for $10. Budgeted sales for the first quarter of
2002 are as follows.

Mark 1.00 out of

1.00

Budgeted Sales

Flag question

January
February

$
400,000
600,000

March

700,000

The company collects 70% in the month of sale and 25% in the following month.
Five percent of all sales are uncollectible and written off.
Budgeted cash receipts for February are:

Select one:
a. $420,000
b. $520,000
c. $540,000
d. $600,000.

e. none of the above.

Question 2

What is the cost of goods sold for the period ending January 31?

Correct

Raw materials, January 1

Mark 1.00 out of

1.00
Flag question

Raw materials, January 31

Work in process, January 1

1,000
900
5,000

Direct labour incurred during January

500

Direct materials used during January

300

Overheads incurred during January

200

Cost of goods manufactured during January4,500

Finished goods inventory, January 1

3,000

Finished goods inventory, January 31

2,000

Cost of goods sold during December

4,200

Select one:
a. 2,000
b. 4,500
c. 5,500
d. 6,000
e. None of the above

Question 3
Correct

KL Ltd sells a product for $10. Budgeted sales for the first quarter of 2002 are as
follows:

Mark 1.00 out of

1.00

Budgeted Sales

Flag question

January
February
March

$
400,000
600,000
700,000

The company wants to maintain an inventory of finished units equal to 30% of

the following months sales and 12,000 units are on hand at the beginning of the
year.
Budgeted production in units for February would be:
Select one:
a. 60,000
b. 63,000

c. 81,000
d. 99,000
e. none of the above.

Question 4
Correct
Mark 1.00 out of
1.00
Flag question

Projected sales for RST for next year and beginning and ending inventory data
are as follows:
Sales
Beginning inventory
Targeted ending inventory

5,000 units
200 units
150 units

The selling price is $25 per unit. Each unit requires 6 kg of material which costs
$3 per kg. The beginning inventory of raw materials is 5,000 kg. The company
wants to have 4,000 kg of material in inventory at the end of the year.
Kg of material to be purchased would be:
Select one:
a. 29,900
b. 29,700
c. 28,700
d. 27,700
e. none of the above.

Question 5

Carter Manufacturers have budgeted sales for the coming months as follows:

Correct
Mark 1.00 out of
1.00
Flag question

January

160,000 units

February

240,000 units

March

200,000 units

April

400,000 units

May

150,000 units

The firm has decided that to avoid losing customers because of production holdups it will in future maintain a finished goods inventory on hand equal to 20% of
the following months budgeted sales. At 31 December the company had ending
inventory finished goods of 10,000 units. What is budgeted production for the
quarter JanuaryMarch?
Select one:
a. 530,000 units.

b. 830,000 units.
c. 670,000 units.
d. 970,000 units.
e. 680,000 units.

Question 6
Correct

BeActive Sporting Goods sells tandem bicycles. The following data was taken
from the most recent quarterly sales forecast.

Mark 1.00 out of

1.00

Expected

Target Inventory

Sales

End of Month

Units

Units

April

1,400

315

May

1,575

412

June

1,650

425

Flag question

BeActives cost for one bicycle is $125.

How many units should the company purchase in May?
Select one:
a. 1,987
b. 1,672
c. 1,575
d. 1,562
e. 1,478

Question 7
Correct

Budgeted purchases for ABC Company for the first quarter of 2002 are as
follows:

Mark 1.00 out of

1.00

Budgeted Purchases

Flag question

$
January

250,000

February
March

300,000
500,000

The Company pays for 40% of their purchases in the month of purchase and

60% in the following month.

Budgeted cash payments on accounts payable for March are:
Select one:
a. $200,000
b. $380,000
c. $500,000
d. $680,000
e. none of the above.

Question 8

Material amounts of underapplied or overapplied overhead should be:

Correct
Mark 1.00 out of
1.00
Flag question

Select one:
a. treated as an adjustment to cost of goods sold
b. treated as an adjustment to work in process inventory
c. allocated to direct materials inventory, work in process inventory and
finished goods inventory
d. Allocated to work in process inventory, finished goods inventory, and cost
of goods sold
e. none of the above.

Question 9
Correct
Mark 1.00 out of
1.00

On January 1, Bandy Manufacturing plans to introduce a product called Handy

Dandy. The company plans to sell each unit of Handy Dandy for $25.00.
Management has forecast the following in sales units for the first three months.

Flag question

Sales units

January

February

March

35,000

28,000

40,000

Each unit of Handy Dandy requires 2 kg of Dingaling and 1 hour of direct labour.
Management wants to end each month with a Handy Dandy inventory level
equal to 10 per cent of the following months sales, and a Dingaling inventory
equal to 5 per cent of the following months production. Dingaling can be
purchased for $3 per kg and direct labour costs are estimated to be $5.00 per
hour. How many kg of Dingaling should be purchased in January?
Bandy plans to have no inventory of Dingaling on January 1:
Select one:
a. 75,600
b. 78,520

c. 72,800
d. 72,680
e. 78,400

Question 10

Bad debt expense would appear in which of the following budgets?

Incorrect

Select one:

Mark 0.00 out of

1.00

a. cash budget

Flag question

b. direct materials purchases budget

c. selling and administrative expenses budget
d. manufacturing overhead budget
e. none of the above.

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