Question :
31) Unit sales of Product 1 currently 20,000, while unit : 1196257
31) Unit sales of Product 1 are currently 20,000, while unit sales of Product 2 are double those of Product 1. What will the company’s sales forecast be assuming sales of Product 1 increase by 10 percent and those of Product 2 go up by 8,000 units? 31) ______ A) 70,000 units B) 20,000 and 40,000 units, respectively C) 22,000 and 44,000 units, respectively D) 22,000 and 48,000 units, respectively E) 22,000 and 46,000 units, respectively
32) For next year Flexsteel Company has budgeted sales of 40,000 units, target ending finished goods inventory of 2,000 units, and a beginning finished goods inventory of 1,200 units. All other inventories are zero. How many units should be produced? 32) ______ A) 39,200 units B) 42,800 units C) 40,800 units D) 40,000 units E) 41,800 units
33) Randy Company has budgeted sales of 12,000 units, target ending finished good inventory of 2,000 units, and a beginning finished goods inventory of 600 units. How many units should be produced? 33) ______ A) 7,250 units B) 13,400 units C) 9,400 units D) 14,600 units E) 10,600 units
34) Cooper Company has a production schedule of 18,000 units and a budgeted sales volume of 20,000 units for the current year. In addition, 4,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory? 34) ______ A) 14,000 units B) 2,000 units C) 20,000 units D) 1,900 units E) 6,000 units
35) The direct materials usage budget is based on 35) ______ A) the predetermined factory overhead rate. B) the amount of labour hours worked. C) the units to be produced during a period. D) budgeted sales dollars. E) direct materials purchases.
36) Direct material purchases equal 36) ______ A) beginning inventories plus production needs. B) the number of units to be produced times the amount of direct material in each unit. C) usage plus production needs. D) usage plus target ending inventories less beginning inventories. E) production needs plus target ending inventories.
37) Manufacturing overhead costs for the budget include all types of factory expenses EXCEPT 37) ______ A) fixed items such as amortization. B) maintenance. C) those that cannot be estimated. D) direct materials and supervision. E) direct labour and direct materials.
38) Berry’s Boxes manufactures boxes. It expects to sell 20,000 boxes in 20×1. The company had enough beginning inventory of direct materials to produce 24,000 units. Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units. The boxes sell for $3.00 and the company keeps no work-in-process inventory. Direct materials costs for each box total $1.00 while direct labour is $0.50. Factory overhead is $0.20 per box.
What would be the amount of sales in the budgeted income statement? 38) ______ A) $78,000 B) $54,000 C) $60,000 D) $72,000 E) $79,500
39) 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 would be the amount of sales in the budgeted income statement? 39) ______ A) $300,500 B) $312,000 C) $318,000 D) $240,000 E) $216,000
40) 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.
How many flowerpots will be produced in 2007? 40) ______ A) 18,000 flowerpots B) 44,000 flowerpots C) 41,000 flowerpots D) 39,000 flowerpots E) 48,000 flowerpots
