Question :
45. The production requirements for May are:
A)295,000
B)315,000
C)271,800
D)291,400
4 : 1369924
45. The production requirements for May are:
A)295,000
B)315,000
C)271,800
D)291,400
46. The production requirements for June are:
A)248,000
B)225,000
C)223,000
D)205,000
Use the following to answer questions 47-48:
Waterford Enterprises’ unit production was budgeted for the first six months of its fiscal year as follows:
March
32,000
June
34,500
April
37,500
July
45,500
May
41,000
August
40,000
Each unit of product requires 15 pounds of raw material and management wants to maintain an ending inventory of raw material equal to 12% of the next month’s production requirements.
47. The direct materials purchases budget for May is:
A)603,300
B)615,000
C)677,100
D)750,900
48. The direct materials purchases budget for June is:
A)517,500
B)537,300
C)599,400
D)661,500
Use the following to answer questions 49-55:
Hepburn Corporation’s sales price is $30 per unit. Unit sales information is presented below:
March (Actual)
April (Estimated)
May (Estimated)
Cash sales
10,000
12,000
13,000
Credit sales
30,000
40,000
45,000
Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month’s sales in ending finished goods inventory.
49. What are Hepburn Corporation’s expected cash collections for April?
A)$2,725,000
B)$1,350,000
C)$1,560,000
D)$1,330,200
50. How many units should Hepburn produce during April.
A)57,800
B)52,300
C)52,000
D)51,700
51. Each finished unit requires 5 units of raw material and raw material can be purchased at $3 per unit. Hepburn wants to have 15% of the next month’s needs in ending raw materials inventory. The March 31, raw materials inventory is 40,000 units and Hepburn estimates May production at 58,000 units. What amount should Hepburn budget for raw material purchases for April?
A)$912,750
B)$855,000
C)$790,500
D)$784,500
52. Each finished unit requires 2 direct labor hours. The average direct labor rate is $14 per hour. What amount should Hepburn budget for direct labor for April?
A)$1,596,000
B)$1,464,400
C)$ 732,200
D)$ 104,600
53. Hepburn applies overhead at the rate of $10 for each machine hour. Each unit of finished goods requires 0.5 machine hours. What amount should Hepburn budget for overhead for April?
A)$2,615,000
B)$ 523,000
C)$ 366,100
D)$ 261,500
54. Hepburn pays for direct labor and overhead as incurred. It pays for 80 percent of raw material purchases during the month of purchase and the remainder during the next month. Accounts payable on March 31, was $400,000. What amount should Hepburn budget for cash payments for production costs during April?
A)$2,760,100
B)$2,600,100
C)$2,360,100
D)$1,725,900
