Question : 91. Production estimates for August as follows: Estimated inventory (units), August 1 12,000 : 1246873

 

 

91. Production estimates for August are as follows: 

Estimated inventory (units), August 1

12,000

Desired inventory (units), August 31

9,000

Expected sales volume (units), August

75,000

 

 

For each unit produced, the direct materials requirements are as follows: 

Direct material A ($5 per lb.)

3 lbs.

Direct material B ($18 per lb.)

1/2 lb.

 

 

The number of pounds of materials A and B required for August production is: A. 216,000 lbs. of A; 72,000 lbs. of BB. 216,000 lbs. of A; 36,000 lbs. of BC. 225,000 lbs. of A; 37,500 lbs. of BD. 234,000 lbs. of A; 39,000 lbs. of B

 

92. Production estimates for August are as follows: 

Estimated inventory (units), August 1

12,000

Desired inventory (units), August 31

9,000

Expected sales volume (units), August

75,000

 

 

For each unit produced, the direct materials requirements are as follows: 

Direct material A ($5 per lb.)

3 lbs.

Direct material B ($18 per lb.)

1/2 lb.

 

 

The total direct materials purchases (assuming no beginning or ending inventory of material) of materials A and B required for August production is: A. $1,080,000 for A; $1,296,000 for BB. $1,080,000 for A; $648,000 for BC. $1,125,000 for A; $675,000 for BD. $1,170,000 for A; $702,000 for B

 

93. Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May. 

Estimated inventory (units), May 1

20,000

Desired inventory (units), May 31

15,000

Expected sales volume (units):

 

  South region

20,000

  West region

40,000

  North region

20,000

Unit sales price

$10

 

 

 A. 85,000B. 90,000C. 75,000D. 105,000

 

94. Which of the following budgets provides the starting point for the preparation of the direct labor cost budget? A. Direct materials purchases budgetB. Cash budgetC. Production budgetD. Sales budget

 

95. Production and sales estimates for April are as follows: 

Estimated inventory (units), April

19,000

Desired inventory (units), April 30

18,000

Expected sales volume (units):

 

  Area A

3,500

  Area B

4,750

  Area C

4,250

Unit sales price

$20

 

 

The number of units expected to be manufactured in April is: A. 11,500B. 10,000C. 12,500D. 13,500

 

96. Production and sales estimates for April are as follows: 

Estimated inventory (units), April 1

9,000

Desired inventory (units), April 30

8,000

Expected sales volume (units):

 

  Area A

3,500

  Area B

4,750

  Area C

4,250

Unit sales price

$20

 

 

The budgeted total sales for April is: A. $200,000B. $230,000C. $270,000D. $250,000

 

97. If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is: A. 6,900B. 7,000C. 7,200D. 7,100

 

98. Production estimates for July are as follows: 

Estimated inventory (units), July 1

8,500

Desired inventory (units), July 31

10,500

Expected sales volume (units), July

76,000

 

 

For each unit produced, the direct materials requirements are as follows: 

Direct material A ($5 per lb.)

3 lbs.

Direct material B ($18 per lb.)

1/2 lb.

 

 

The number of pounds of materials A and B required for July production is: A. 216,000 lbs. of A; 36,000 lbs. of BB. 216,000 lbs. of A; 72,000 lbs. of BC. 234,000 lbs. of A; 39,000 lbs. of BD. 225,000 lbs. of A; 37,500 lbs. of B

 

99. Production estimates for July are as follows: 

Estimated inventory (units), July 1

8,500

Desired inventory (units), July 31

10,500

Expected sales volume (units), July

76,000

 

 

For each unit produced, the direct materials requirements are as follows: 

Direct material A ($5 per lb.)

3 lbs.

Direct material B ($18 per lb.)

1/2 lb.

 

 

The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is: A. $1,080,000 for A; $648,000 for BB. $1,080,000 for A; $1,296,000 for BC. $1,170,000 for A; $702,000 for BD. $1,125,000 for A; $675,000 for B

 

100. The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January – 200,000 units; February – 180,000 units; March – 210,000 units; and April – 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. What should the budgeted production be for January? A. 236,000B. 181,000C. 200,000D. 219,000

 

 

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