Question :
121.Jazzy Janitors has found that only 10% of its invoiced : 1302857
121.Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors’ invoiced $200,000 to clients. Projected revenues for the first six months of 2014 are given below:
MonthRevenue
January $180,000
February 215,000
March 220,000
April 218,000
May 240,000
June 255,000
What is the expected Accounts Receivable balance at March 31, 2014?
A.$198,000
B.$280,500
C.$262,500
D.$205,000
122.Bandaloon Foods expects to make the following inventory purchases during the last three months of the year:
MonthPurchases
October $80,000
November 100,000
December 160,000
During September, Bandaloon purchased $72,000 of inventory. The restaurant typically pays for 25% of the inventory purchases within the month of the purchase and 75% in the following month. How much are estimated cash disbursements in November for inventory purchases?
A.$95,000
B.$100,000
C.$85,000
D.$115,000
123.DuraBlend First Aid started operations on January 1, 2014. On that date, the only assets were cash of $13,000, and inventory of $600 consisting of direct materials. The company sells first aid kits for $18 each. Additional information concerning the company’s operations follows:
Variable costs of production are $5 for each kit consisting of direct materials of $2.00, direct labor totaling $1.80, and $1.20 per unit in variable overhead.
Other expenses include $1 per first aid kit in variable selling expenses, $22,000 per month in fixed production costs, and $14,000 per month in fixed selling and administration costs.
Sales are collected 40% in the month of sales and 60% in the month after the sale.
All expenses are paid in the month they are incurred except materials that are paid in the month following purchase.
The company plans its ending inventory of first aid kits to be 20% of the units to be sold during the next month. Direct material inventory is budgeted to be equal to 10% of the next month’s production requirements.
Sales in units are forecasted as follows:
January 6,000
February 8,000
March 7,000
April 9,000
What is the budgeted net income using the contribution format for February?
A.$66,000
B.$60,000
C.$68,000
D.None of the answer choices are correct.
124.DuraBlend First Aid started operations on January 1, 2014. On that date, the only assets were cash of $13,000, and inventory of $600 consisting of direct materials. The company sells first aid kits for $18 each. Additional information concerning the company’s operations follows:
Variable costs of production are $5 for each kit consisting of direct materials of $2.00, direct labor totaling $1.80, and $1.20 per unit in variable overhead.
Other expenses include $1 per first aid kit in variable selling expenses, $22,000 per month in fixed production costs, and $14,000 per month in fixed selling and administration costs.
Sales are collected 40% in the month of sales and 60% in the month after the sale.
All expenses are paid in the month they are incurred except materials that are paid in the month following purchase.
The company plans its ending inventory of first aid kits to be 20% of the units to be sold during the next month. Direct material inventory is budgeted to be equal to 10% of the next month’s production requirements.
Sales in units are forecasted as follows:
January 6,000
February 8,000
March 7,000
April 9,000
How much are budgeted cash collections for February?
A.$57,600
B.$6,800
C.$122,400
D.$133,200
125.DuraBlend First Aid started operations on January 1, 2014. On that date, the only assets were cash of $13,000, and inventory of $600 consisting of direct materials. The company sells first aid kits for $18 each. Additional information concerning the company’s operations follows:
Variable costs of production are $5 for each kit consisting of direct materials of $2.00, direct labor totaling $1.80, and $1.20 per unit in variable overhead.
Other expenses include $1 per first aid kit in variable selling expenses, $22,000 per month in fixed production costs, and $14,000 per month in fixed selling and administration costs.
Sales are collected 40% in the month of sales and 60% in the month after the sale.
All expenses are paid in the month they are incurred except materials that are paid in the month following purchase.
The company plans its ending inventory of first aid kits to be 20% of the units to be sold during the next month. Direct material inventory is budgeted to be equal to 10% of the next month’s production requirements.
Sales in units are forecasted as follows:
January 6,000
February 8,000
March 7,000
April 9,000
How many first aid kits will the company produce in February?
A.7,800 units
B.7,400 units
C.9,400 units
D.8,200 units
126.DuraBlend First Aid started operations on January 1, 2014. On that date, the only assets were cash of $13,000, and inventory of $600 consisting of direct materials. The company sells first aid kits for $18 each. Additional information concerning the company’s operations follows:
Variable costs of production are $5 for each kit consisting of direct materials of $2.00, direct labor totaling $1.80, and $1.20 per unit in variable overhead.
Other expenses include $1 per first aid kit in variable selling expenses, $22,000 per month in fixed production costs, and $14,000 per month in fixed selling and administration costs.
Sales are collected 40% in the month of sales and 60% in the month after the sale.
All expenses are paid in the month they are incurred except materials that are paid in the month following purchase.
The company plans its ending inventory of first aid kits to be 20% of the units to be sold during the next month. Direct material inventory is budgeted to be equal to 10% of the next month’s production requirements.
Sales in units are forecasted as follows:
January 6,000
February 8,000
March 7,000
April 9,000
How much will be reported for Accounts Receivable on the company’s balance sheet at the end of February?
A.$122,400
B.$86,400
C.$43,200
D.$57,600
127.Bake Time makes and sells baking pans. Each pan uses 0.70 pounds of aluminum. Budgeted production and sales of pans in units for the next five months is as follows:
JuneJulyAugustSeptemberOctober
Budgeted production22,18021,94024,94026,24023,720
Budgeted sales22,40021,30024,50026,70024,400
The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month’s budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month’s sales. The cost of aluminum is $0.85 per pound. How much is the cost of budgeted material purchases for August?
A.$14,693
B.$17,595
C.$14,955
D.None of the answer choices are correct.
128.Bake Time makes and sells baking pans. Each pan uses 0.70 pounds of aluminum. Budgeted production and sales of pans in units for the next five months is as follows:
JuneJulyAugustSeptemberOctober
Budgeted production22,18021,94024,94026,24023,720
Budgeted sales22,40021,30024,50026,70024,400
The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month’s budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month’s sales. The cost of aluminum is $0.85 per pound. How much is budgeted raw materials to be reported on the company’s balance sheet at August 31?
A.$2,342
B.$3,936
C.$2,755
D.$3,346
129.Harkin Products expects to make purchases of $65,000 in January; $80,000 in February; $50,000 in March; and $90,000 in April. Purchases are paid 30% in the month of purchase and 70% in the month after purchase. How much is budgeted accounts payable at March 31?
A.$35,000
B.$71,000
C.$59,000
D.None of the answer choices are correct.
130.Sharone Janitorial Supplies expects to make purchases of $100,000 in January; $240,000 in February; $350,000 in March; and $230,000 in April. Purchases are paid 30% in the month of purchase and 70% in the month after purchase. How much is budgeted accounts payable at the end of February?
A.$70,000
B.$168,000
C.$142,000
D.$72,000
