Question :
111. Keegan Company manufactures a single product and has a JIT : 1225634
111. Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month’s sales. It estimates that May’s ending inventory will consist of 20,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Compute the number of units to be produced that would appear on the company’s production budget for the month of June.
A. 288,000.
B. 260,000.
C. 289,000.
D. 280,000.
E. 309,000.
112. Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month’s sales. It estimates that May’s ending inventory will consist of 20,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Keegan assigns variable overhead at a rate of $1.80 per unit of production. Fixed overhead equals $400,000 per month. Compute the number of units to be produced and use to compute the total budgeted overhead that would appear on the factory overhead budget for month ended June 30.
A. $520,200.
B. $920,200.
C. $922,000.
D. $904,000.
E. $905,800.
113. Grafton sells a product for $700. Unit sales for May were 400 and a 3% growth in unit sales is forecasted for each month. Compute the total sales to be reported on the sales budget for month ended June 30.
A. $280,000.
B. $297,000.
C. $271,600.
D. $288,400.
E. $364,000.
114. Grafton sells a product for $700. Unit sales for May were 400 and a 3% growth in unit sales is forecasted for each month. Grafton pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30.
A. $8,600.
B. $11,652.
C. $8,652.
D. $5,768.
E. $8,768.
115. Grafton sells a product for $700. Unit sales for May were 400 and a 3% growth in unit sales is forecasted for each month. Grafton pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars. Assume 30% of Grafton’s sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.
A. $282,520.
B. $196,000.
C. $201,880.
D. $280,000.
E. $285,880.
116. Grafton budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds of raw material K, which costs $5 per pound. Each month’s ending inventory of raw materials should be 30% of the following month’s budgeted production. The June 1 raw materials inventory has 360 pounds of raw material K. Compute budgeted purchases for raw material K for June.
A. 1,200 lbs.
B. 1,240 lbs.
C. 1,212 lbs.
D. 1,220 lbs.
E. 880 lbs.
117. Grafton budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate if $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July.
A. $6,300.
B. $6,510.
C. $9,450.
D. $9,765.
E. $16,275.
118. Grafton is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000 in cash receipts and $111,290 in cash disbursements during June. Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance. The company has no loans outstanding on June 1.
A. $28,710.
B. $12,290.
C. $16,290.
D. $11,290
E. $6,290.
