Question : 36) For January, budgeted gross margin is: A) $100,000 B) : 1217213

 

36) For January, budgeted gross margin is:

A) $100,000

B) $140,000

C) $60,000

D) $50,000

 

37) For January, the amount budgeted for the nonmanufacturing costs budget is:

A) $78,000

B) $10,000

C) $168,000

D) $18,000

38) Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

 

T-SHIRTSSWEATSHIRTS

Production and sales volume60,000 units35,000 units

Selling price$16.00$29.00

Direct material$ 2.00$ 5.00

Direct labor$ 4.50$ 7.20

Manufacturing overhead$ 2.00$ 3.00

Gross profit$ 7.50$13.80

Selling and administrative$ 4.00$ 7.00

Operating profit$ 3.50$ 6.80

 

What is projected operating income if direct materials costs of T-Shirts increase to $4.00 per unit and direct labor costs of Sweatshirts increase to $8.20 per unit.

A) $293,000

B) $90,000

C) $203,000

D) $473,000

Answer the following questions using the information below:

 

Beat, Inc., expects to sell 60,000 athletic uniforms for $80 each in 2012. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2011:

 

Beginning inventoryEnding inventory

Direct materials24,000 units18,000 units

Work-in-process inventory0 units0 units

Finished goods inventory12,000 units10,000 units

 

39) How many uniforms need to be produced in 2012?

A) 52,000 uniforms

B) 68,000 uniforms

C) 60,000 uniforms

D) 58,000 uniforms

 

40) What is the amount budgeted for direct material purchases in 2012?

A) $1,040,000

B) $1,200,000

C) $1,160,000

D) $1,520,000

41) What is the amount budgeted for cost of goods manufactured in 2012?

A) $2,040,000

B) $1,972,000

C) $2,312,000

D) $2,380,000

 

42) What is the amount budgeted for cost of goods sold in 2012?

A) $2,312,000

B) $1,972,000

C) $2,040,000

D) $4,800,000

Answer the following questions using the information below:

 

Furniture, Inc., estimates the following number of mattress sales for the first four months of 2012:

 

MonthSales

January10,000

February14,000

March13,000

April16,000

 

Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month’s sales.

 

43) How many mattresses need to be produced in January 2012?

A) 8,800 mattresses

B) 11,200 mattresses

C) 13,000 mattresses

D) 14,200 mattresses

 

44) How many mattresses need to be produced in the first quarter (January, February, March) of 2012?

A) 37,000 mattresses

B) 38,800 mattresses

C) 41,800 mattresses

D) 44,800 mattresses

Answer the following questions using the information below:

 

Wallace Company provides the following data for next year:

 

MonthBudgeted Sales

January$120,000

February108,000

March132,000

April144,000

 

The gross profit rate is 40% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 30% of next month’s sales, stated at cost.

 

45) Purchases budgeted for January total:

A) $130,800

B) $72,000

C) $69,840

D) $74,160