Question : 25) Orange Corporation has budgeted sales of 16,000 units, targeted : 1212126

 

25) Orange Corporation has budgeted sales of 16,000 units, targeted ending finished goods inventory of 4,000 units, and beginning finished goods inventory of 2,000 units. How many units should be produced next year?

A) 22,000 units

B) 20,000 units

C) 18,000 units

D) 16,000 units

 

26) For next year, Roberto, Inc., has budgeted sales of 15,000 units, targeted ending finished goods inventory of 750 units, and beginning finished goods inventory of 450 units. All other inventories are zero. How many units should be produced next year?

A) 14,700 units

B) 15,000 units

C) 15,300 units

D) 16,200 units

27) Antique Brass Company has budgeted sales volume of 120,000 units and budgeted production of 108,000 units, while 20,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory?

A) 20,000 units

B) 32,000 units

C) 12,000 units

D) 8,000 units

 

Answer the following questions using the information below:

 

Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:

 

Beginning inventoryEnding inventory

Direct materials24,000 units24,000 units

Work-in-process inventory0 units0 units

Finished goods inventory2,000 units2,500 units

 

28) On the 2016 budgeted income statement, what amount will be reported for sales?

A) $246,000

B) $240,000

C) $312,000

D) $318,000

 

29) How many pool cues need to be produced in 2016?

A) 22,500 cues

B) 22,000 cues

C) 20,500 cues

D) 19,500 cues

30) On the 2016 budgeted income statement, what amount will be reported for cost of goods sold?

A) $139,800

B) $136,000

C) $132,600

D) $153,000

 

31) What are the 2016 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

A) $48,000; $96,000; $19,200

B) $44,000; $88,000; $17,600

C) $41,000; $82,000; $16,400

D) $40,000; $80,000; $16,000

 

Answer the following questions using the information below:

 

Elton, Inc., expects to sell 6,000 ceramic vases for $20 each. Direct materials costs are $2, direct manufacturing labor is $10, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2016:

 

Beginning inventoryEnding inventory

Direct materials1,000 units1,000 units

Work-in-process inventory0 units0 units

Finished goods inventory400 units500 units

 

32) On the 2016 budgeted income statement, what amount will be reported for sales?

A) $122,000

B) $118,000

C) $140,000

D) $120,000

33) How many ceramic vases should be produced in 2016?

A) 5,900 vases

B) 6,100 vases

C) 7,000 vases

D) 6,000 vases

 

34) On the 2016 budgeted income statement, what amount will be reported for cost of goods sold?

A) $105,000

B) $91,500

C) $90,000

D) $88,500