Question : 41) Country Heather manufactures flowerpots. It expects to sell 40,000 : 1196258

 

41) Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00. Factory overhead is $0.40 per flowerpot.

What will be the amount of cost of goods sold? 41) ______ A) $149,600 B) $139,400 C) $136,000 D) $101,500 E) $122,400

42) Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totaled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00. Factory overhead is $0.40 per flowerpot.

What will be the total costs incurred for direct materials, direct manufacturing labour, and manufacturing overhead, respectively, for 2007? 42) ______ A) $82,000; $41,000; $16,400 B) $84,000; $40,000; $16,400 C) $0; $41,000; $16,000 D) $80,000; $40,000; $16,000 E) $0; $40,000; $16,000

43) Fair Score Company manufactures scoreboards for athletic events. It expects to sell 20,000 scoreboards in 2007. The company has enough beginning inventory of direct materials to produce 8,000 units. Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead. Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units. The scoreboards sell for $800. There is no ending work-in-process inventory. Direct materials costs for each scoreboard total $200 while direct labour is $80. Manufacturing overhead is $60 per scoreboard.

What will be the amount of total sales for 2007? 43) ______ A) $18,400,000 B) $17,600,000 C) $15,200,000 D) $12,300,000 E) $16,000,000

44) Fair Score Company manufactures scoreboards for athletic events. It expects to sell 20,000 scoreboards in 2007. The company has enough beginning inventory of direct materials to produce 8,000 units. Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead. Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units. The scoreboards sell for $800. There is no ending work-in-process inventory. Direct materials costs for each scoreboard total $200 while direct labour is $80. Manufacturing overhead is $60 per scoreboard.

How many scoreboards will be produced in 2007? 44) ______ A) 23,000 B) 20,000 C) 19,000 D) 21,000 E) 16,000

45) Fair Score Company manufactures scoreboards for athletic events. It expects to sell 20,000 scoreboards in 2007.

The company has enough beginning inventory of direct materials to produce 8,000 units. Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead. Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units. The scoreboards sell for $800. There is no ending work-in-process inventory. Direct materials costs for each scoreboard total $200 while direct labour is $80. Manufacturing overhead is $60 per scoreboard.

What will be the total costs of direct materials used in 2007? 45) ______ A) $3,155,000 B) $3,200,000 C) $3,600,000 D) $3,400,000 E) $3,800,000

Use the information below to answer the following question(s).

 

Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 2007 is as follows:

 

Month

 

  Sales

January

 

 10,000

February

 

  14,000

March

 

 

  13,000

 

Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month’s sales. April 2007 sales are expected to total 16,000 units.

46) What will be the number of chests produced in January 2007? 46) ______ A) 13,000 chests B) 14,200 chests C) 11,200 chests D) 14,700 chests E) 8,800 chests

47) How many chests will be produced in the first quarter of 2007? 47) ______ A) 44,800 chests B) 38,800 chests C) 37,000 chests D) 41,800 chests E) 48,400 chests

48) Contempo Futon manufactures futons. The estimated number of sales for the last quarter of 2006 is as follows:

 

Month

 

 

 

 

  Sales

October

 

20,000

November

 

 

 25,000

December

 

 

30,000

 

Beginning finished goods should be equal to 30 percent of each month’s sales during these months and 10 percent of each month’s sales in other months. January 2007 sales are anticipated to be 15,000 futons. The cost to produce a futon is $125.

 

What will be the number of futons produced in November? 48) ______ A) 34,000 futons B) 26,500 futons C) 25,000 futons D) 32,500 futons E) 23,000 futons

49) Contempo Futon manufactures futons. The estimated number of sales for the last quarter of 2006 is as follows:

 

Month

 

 

 

 

  Sales

October

 

20,000

November

 

 

 25,000

December

 

 

30,000

 

Beginning finished goods should be equal to 30 percent of each month’s sales during these months and 10 percent of each month’s sales in other months. January 2007 sales are anticipated to be 15,000 futons. The cost to produce a futon is $125.

 

How many futons will be produced in the three months? 49) ______ A) 82,500 futons B) 98,650 futons C) 90,000 futons D) 75,000 futons E) 70,500 futons

50) In going from the sales budget to the production budget, adjustments need to be made for 50) ______ A) overhead charges. B) finished goods inventories. C) direct materials inventories. D) changing from revenue to costs. E) sales returns and allowances.