123) The cost of December merchandise purchases would be:
A) $248,000
B) $232,000
C) $117,600
D) $192,000
124) December cash disbursements for merchandise purchases would be:
A) $192,000
B) $243,200
C) $117,600
D) $248,000
125) The difference between cash receipts and cash disbursements for December would be:
A) $46,600
B) $19,200
C) $13,700
D) $38,700
126) The net income for December would be:
A) $19,900
B) $38,700
C) $40,900
D) $13,700
127) The cash balance at the end of December would be:
A) $69,100
B) $25,000
C) $57,900
D) $38,300
128) Accounts payable at the end of December would be:
A) $192,000
B) $248,000
C) $117,600
D) $74,400
129) Retained earnings at the end of December would be:
A) $325,100
B) $311,400
C) $353,400
D) $347,200
Luchini Corporation makes one product and it provided the following information to help prepare
the master budget for the next four months of operations:
a. The budgeted selling price per unit is $111. Budgeted unit sales for April, May, June, and July
are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.
b. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following
month.
c. The ending finished goods inventory equals 10% of the following month’s sales.
d. The ending raw materials inventory equals 30% of the following month’s raw materials
production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw
materials cost $5.00 per pound.
e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the
following month.
f. The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct
labor-hours.
g. Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing
overhead is zero.
130) The budgeted accounts receivable balance at the end of May is closest to:
A) $747,000
B) $448,440
C) $672,660
D) $1,121,100
131) If 66,850 pounds of raw materials are required for production in June, then the budgeted raw
material purchases for May is closest to:
A) 52,100 pounds
B) 72,155 pounds
C) 87,785 pounds
D) 56,525 pounds
132) If the budgeted cost of raw materials purchases in April is $207,650 and in May is $282,625,
then in May the total budgeted cash disbursements for raw materials purchases is closest to:
A) $124,590
B) $237,640
C) $169,575
D) $113,050
133) The estimated finished goods inventory balance at the end of May is closest to:
A) $102,676
B) $111,986
C) $26,999
D) $129,675
133
Fuson Corporation makes one product and has provided the following information to help prepare
the master budget for the next four months of operations:
Budgeted selling price per unit
$
118
Budgeted unit sales (all on credit):
October
9,600
November
10,100
December
13,700
January
11,300
–
Raw materials requirement per unit of output
3
pounds
Raw materials cost
$
4.00
per pound
Direct labor requirement per unit of output
2.7
direct labor-hours
Direct labor wage rate
$
23.00
per direct labor-hour
Predetermined overhead rate (all variable)
$
12.00
per direct labor-hour
–
Credit sales are collected:
30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 10% of the following month’s sales. The ending
raw materials inventory should equal 10% of the following month’s raw materials production
needs.
134) The budgeted accounts receivable balance at the end of November is closest to:
A) $795,000
B) $357,540
C) $1,191,800
D) $834,260
135) If 40,380 pounds of raw materials are required for production in December, then the budgeted
raw material purchases for November is closest to:
A) 32,280 pounds
B) 38,556 pounds
C) 31,380 pounds
D) 35,418 pounds
136) If the budgeted cost of raw materials purchases in October is $116,772 and in November is
$129,120, then in November the total budgeted cash disbursements for raw materials purchases is
closest to:
A) $81,740
B) $90,384
C) $38,736
D) $120,476
137) The estimated finished goods inventory balance at the end of November is closest to:
A) $44,388
B) $117,957
C) $101,517
D) $145,905
Petrini Corporation makes one product and it provided the following information to help prepare
the master budget for the next four months of operations:
a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March,
and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit.
b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following
month.
c. The ending finished goods inventory equals 30% of the following month’s sales.
d. The ending raw materials inventory equals 10% of the following month’s raw materials
production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw
materials cost $4.00 per pound.
e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the
following month.
f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct
labor-hours.
g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour.
h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and
administrative expense per month is $70,000.
138) The budgeted sales for February is closest to:
A) $825,000
B) $1,166,000
C) $1,287,000
D) $1,320,000
139) The expected cash collections for February is closest to:
A) $577,500
B) $927,300
C) $349,800
D) $825,000
140) The budgeted accounts receivable balance at the end of February is closest to:
A) $777,000
B) $1,166,000
C) $816,200
D) $349,800