Question :
35) What the 2016 budgeted production costs for direct materials, : 1212102
35) What are the 2016 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?
A) $12,200; $61,000; $18,300
B) $12,000; $60,000; $18,000
C) $2,000; $10,000; $3,000
D) $2,000; $0; $4,500
Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation, a retailer:
Budgeted sales are $200,000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 70% of sales
Merchandise purchases total $150,000 in January
Marketing costs are $3,000 each month
Distribution costs are $5,000 each month
Administrative costs are $10,000 each month
36) For January, budgeted gross margin is ________.
A) $100,000
B) $140,000
C) $60,000
D) $50,000
37) For January, the amount budgeted for the nonmanufacturing costs budget is ________.
A) $78,000
B) $10,000
C) $168,000
D) $18,000
38) Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
T-SHIRTSSWEATSHIRTS
Production and sales volume60,000 units35,000 units
Selling price$16.00$29.00
Direct material$ 2.00$ 5.00
Direct labor$ 4.50$ 7.20
Manufacturing overhead$ 2.00$ 3.00
Gross profit$ 7.50$13.80
Selling and administrative$ 4.00$ 7.00
Operating profit$ 3.50$ 6.80
What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $13.00 per unit?
A) $293,000
B) $90,000
C) $203,000
D) $473,000
Answer the following questions using the information below:
Meridian Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,000 units of Prime and 1,000 units of Luxuria in 2016.The following estimates are given for 2016:
PrimeLuxuria
Selling price$200$500
Direct materials2050
Direct labor40150
Manufacturing overhead40100
Meridian had an inventory of 200 units of Prime and 75 units of Luxuria at the end of 2015. It has decided that as a measure to counter stock outages it will maintain ending inventory of 350 units of Prime and 200 units of Luxuria.
Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $10. There were 100 units of Crimpson in stock at the end of 2015.The management does not want to have any stock of Crimpson at the end of 2016.
39) How many units of Prime watches must be produced in 2016?
A) 3,350 units
B) 3,150 units
C) 3,000 units
D) 2,800 units
40) What is the amount budgeted for purchase of Crimpson in 2016?
A) $31,500
B) $10,250
C) $30,500
D) $10,000
41) What is the total budgeted cost of sold for Meridian Industries in 2016?
A) $500,000
B) $600,000
C) $700,000
D) $800,000
42) What is the total budgeted cost of goods manufactured in 2016?
A) $600,000
B) $625,500
C) $652,500
D) $667,500
Answer the following questions using the information below:
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2016:
MonthSales
January22,000
February30,800
March28,600
April35,200
Finished goods inventory at the end of December is 6,600 units. Target ending finished goods inventory is 20% of the next month’s sales.
43) How many mattresses need to be produced in January 2016?
A) 15,400 mattresses
B) 21,560 mattresses
C) 28,460 mattresses
D) 34,160 mattresses
44) How many mattresses should be produced in the first quarter of 2016?
A) 88,880 mattresses
B) 81,840 mattresses
C) 60,280 mattresses
D) 51,920 mattresses
