Question : 118. The budgeted finished goods inventory and cost of goods sold : 1226974

118. The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2012 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. $1,405,000B. $2,560,000C. $2,435,000D. $3,965,000

119. 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 hoursB. 1,618,750 direct labor hoursC. 735,000 direct labor hoursD. 353,500 direct labor hours

120. 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. $812,000B. $688,000C. $468,000D. $984,000

121. Estimated cash payments are planned reductions in cash from all of the following except: A. manufacturing and operating expensesB. capital expendituresC. notes and accounts receivable collectionsD. payments for interest or dividends

122. 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 balanceB. it is an important way of effectively managing cashC. it provides a safety buffer for variations in estimatesD. to have funds available for major capital expenditures

123. 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 and 20% in the month following the sale. The cash collections in September from accounts receivable are: A. $223,600B. $145,600C. $192,000D. $168,000

124. 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 and 20% in the month following the sale. The cash collections in October from accounts receivable are: A. $232,400B. $240,000C. $210,000D. $337,400

125. 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 and 20% in the month following the sale. The cash collections in November from accounts receivable are: A. $294,000B. $336,000C. $295,200D. $273,000

126. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs: 

April

May

June

Manufacturing costs (1)

$156,800

$195,200

$217,600

Insurance expense (2)

1,000

1,000

1,000

Depreciation expense

2,000

2,000

2,000

Property tax expense (3)

500

500

500

(1)      3/4 of the manufacturing costs are paid for in the month they are incurred.  1/4 is paid in the following month.(2)      Insurance expense is $1,000 a month, however, the insurance is paid four times yearly in the first month of the quarter, i.e. January, April, July, and October.(3)      Property tax is paid once a year in November. The cash payments for Finch Company in the month of April are: A. $122,600B. $120,600C. $123,100D. $121,100

127. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs: 

April

May

June

Manufacturing costs (1)

$156,800

$195,200

$217,600

Insurance expense (2)

1,000

1,000

1,000

Depreciation expense

2,000

2,000

2,000

Property tax expense (3)

500

500

500

(1)      3/4 of the manufacturing costs are paid for in the month they are incurred.  1/4 is paid in the following month.(2)      Insurance expense is $1,000 a month, however, the insurance is paid four times yearly in the first month of the quarter, i.e. January, April, July, and October.(3)      Property tax is paid once a year in November. The cash payments for Finch Company in the month of May are: A. $185,600B. $149,900C. $187,600D. $189,100