Question : Use the information below to answer the following question(s). Boone Hobbies, : 1186312

 

Use the information below to answer the following question(s).

 

Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000. Cost of units sold is expected to be 40 percent of sales. All units are paid for in the month following purchase. The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired. Beginning accounts payable is $152,000.

 

41) Boone Hobbies gross margin for next month is expected to be

A) $280,000.

B) $336,000.

C) $356,000.

D) $360,000.

E) $240,000.

 

42) Boone Hobbies budgeted purchases for next month is expected to be

A) $240,000.

B) $264,000.

C) $225,000.

D) $360,000.

E) $244,000.

 

43) A rolling budget is a budget or plan that

A) rolls several budgets together for forecasting purposes.

B) has one budget category roll into the next category.

C) rolls all budget categories together into a master budget.

D) is always available for a specified future period by replacing time periods as the lapse.

E) is not used to guide operations.

44) The operating budget includes the

A) capital budget.

B) cash budget.

C) budgeted balance sheet.

D) budgeted cash flow statement.

E) production budget.

 

Use the information below to answer the following question(s).

 

Konrade Inc. expects to sell 30,000 athletic uniforms for $80 each in 2012. Direct materials costs are $20, direct manufacturing labour is $8, and manufacturing overhead is $6 for each uniform. Each uniform requires 2.0 square metres (sq. m.) of material which is all added at the start of production. The following inventory levels are expected to apply to 2012:

 

 

Beginning inventory

Ending inventory

Direct materials

12,000 units

9,000 units

Work-in-process inventory

0 units

0 units

Finished goods inventory

6,000 units

5,000 units

 

45) What is the amount budgeted for cost of goods manufactured in 2012?

A) $1,020,000

B) $986,000

C) $1,156,000

D) $1,190,000

E) $1,054,000

 

46) What is the amount budgeted for cost of goods sold in 2012?

A) $1,156,000

B) $986,000

C) $840,000

D) $2,400,000

E) $1,020,000

Use the information below to answer the following question(s).

 

Daniel Inc. expects to sell 6,000 ceramic vases for $20 each in 2012. Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase. Each vase requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started. Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2012:

 

 

Beginning inventory

Ending inventory

Direct materials

1,000 kg

800 kg

Work-in-process inventory

100 units

300 units

Finished goods inventory

400 units

500 units

 

47) On the 2012 budgeted income statement, what amount will be reported for gross margin?

A) $122,000

B) $90,000

C) $48,000

D) $30,000

E) $120,000

 

48) How many ceramic vases need to be produced in 2012?

A) 5,900 vases

B) 6,100 vases

C) 7,000 vases

D) 6,000 vases

E) 6,300 vases

 

49) How many kilograms of material will need to be purchased for 2012 production and inventory requirements?

A) 3,100 kg

B) 2,900 kg

C) 2,750 kg

D) 3,150 kg

E) 2,950 kg

50) On the 2012 budgeted income statement, what amount will be reported for cost of goods sold?

A) $91,500

B) $105,000

C) $90,000

D) $88,500

E) $72,000