Question

185)

Masterson Company's budgeted production calls for 62,000 liters in April and 58,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 25% of the following month's budgeted materials. The April 1 inventory for this material is 15,500 liters. What is the budgeted materials purchases for April?

Multiple Choice

$141,525.

$118,400.

$86,025.

$114,700.

$112,850.

186)

The Gardner Company expects sales for October of $254,000. Experience suggests that 55% of sales are for cash and 45% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $71,000. What is the amount of cash expected to be collected in October?

Multiple Choice

$127,000.

$267,850.

$139,700.

$210,700.

$196,850.

187)

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Cost of goods sold	$	750,000
Merchandise inventory, January 1		87,700
Merchandise inventory, December 31		85,100
Accounts payable, January 1		56,300
Accounts payable, December 31		62,300

Multiple Choice

$741,000.

$741,400.

$753,000.

$747,400.

$752,600.

188)

Using the information below, calculate the cost of goods manufactured for the period:

Beginning Raw Materials Inventory	$	36,000
Ending Raw Materials Inventory		27,600
Beginning Work in Process Inventory		66,000
Ending Work in Process Inventory		75,000
Beginning Finished Goods Inventory		96,500
Ending Finished Goods Inventory		78,000
Cost of Goods Sold for the period		551,000
Sales revenues for the period		1,265,000
Operating expenses for the period		243,000

Multiple Choice

$560,000.

$569,500.

$532,500.

$576,200.

$541,500.

189)

Memphis Company anticipates total sales for April, May, and June of $930,000, $1,030,000, and $1,080,000 respectively. Cash sales are normally 20% of total sales. Of the credit sales, 35% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 5% are collected in the second month. Compute the amount of accounts receivable reported on the company’s budgeted balance sheet for June 30.

Multiple Choice

$1,012,800.

$697,600.

$940,800.

$602,800.

$561,600.

190)

Using the information below, compute the raw materials inventory turnover:

Raw Materials Used	$	153,600
Beginning Raw Materials Inventory		19,600
Ending Raw Materials Inventory		21,800

Multiple Choice

7.84.

7.05.

46.60.

7.42.

51.80.

Answer 1

185) Budgeted material purchase = 62000+(58000*25%)-15500 = 61000 liters

Cost of material purchase = 61000*1.85 = $112850

So answer is e) $112850

186) cash collection in october = (254000*55%+254000*45%*50%)+71000 = $267850

So answer is B) $267850

187) Cash paid for merchandise = Cost of goods sold-Decrease inventory-Increase account payable

= 750000-2600-6000

Cash paid for merchandise = 741400

So answer is b) $741400

188) Cost of goods manufactured = Ending Finished goods+Cost of goods sold-Beginning finished goods

= 78000+551000-96500

Cost of goods manufactured = 532500

So answer is c) $532500

189) Account receivable at june 30 = (1030000*80%*5%+1080000*80%*65%) = $602800

So answer is d) $602800

190) Raw material turnover = 153600/20700 = 7.42

So answer is d) 7.42