Question : 111. The budgeted finished goods inventory and cost of goods sold : 1246875

111. The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2010 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is? 
A. $1,255,000
B. $2,335,000
C. $2,785,000
D. $3100,000

112. The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2010 are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; cost of goods sold for the year, $2,560,000. The budgeted costs of goods manufactured for the year is? 
A. $1,405,000
B. $2,560,000
C. $2,435,000
D. $3,965,000

113. The Warbler Jeans Company produces two different types of jeans. One is called the “Simple Life” and the other is called the “Fancy Life” The company’s Production Budget requires 353,500 units of Simple jeans and 196,000 Fancy jeans to be manufactured. It is estimated that 2.5 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.75 hours of direct labor hours for each pair of Fancy life jeans.

What is the total number of direct labor hours needed for both lines of jeans? 
A. 883,750 direct labor hours
B. 1,618,750 direct labor hours
C. 735,000 direct labor hours
D. 353,500 direct labor hours

114. The Warbler Jeans Company produces two different types of jeans. One is called the “Simple Life” and the other is called the “Fancy Life” The company’s Production Budget requires 353,500 units of Simple jeans and 196,000 Fancy jeans to be manufactured. It is estimated that 2.5 direct labor hours will be needed to manufacture one pair of Simple Life jeans and 3.75 hours of direct labor hours for each pair of Fancy life jeans.

What is the total number of direct labor hours needed for both lines of jeans? 
A. 900,000 direct labor hours
B. 1,631,250 direct labor hours
C. 731,250 direct labor hours
D. 355,000 direct labor hours

115. Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: 
A. $812,000
B. $688,000
C. $468,000
D. $984,000

116. Estimated cash payments are planned reductions in cash from all of the following except: 
A. manufacturing and operating expenses
B. capital expenditures
C. notes and accounts receivable collections
D. payments for interest or dividends

117. Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons: 
A. stockholders demand a minimum cash balance
B. it is an important way of effectively managing cash
C. it provides a safety buffer for variations in estimates
D. to have funds available for major capital expenditures

118. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the following month.

The cash collections in September from accounts receivable are: 
A. $223,600
B. $145,600
C. $192,000
D. $168,000

119. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the following month.

The cash collections in October from accounts receivable are: 
A. $232,400
B. $240,000
C. $210,000
D. $337,400

120. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the following month.

The cash collections in November from accounts receivable are: 
A. $294,000
B. $336,000
C. $295,200
D. $273,000