# Quiz 8 - 1. Figure 8-9 Gentry Company produces speaker...

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1.   Figure 8-9 Gentry Company produces speaker systems for trucks. Estimated sales (in units) in January are 20,000; in February 25,000; and in March 22,000. Each unit is priced at \$45. Gentry wants to have 25% of the following month’s sales in ending inventory. That requirement was met on January 1. Each speaker system requires 2 boxes and 10 yards of wire. Boxes cost \$5 each and wire is \$0.90 per yard. Gentry wants to have 30% of the following month’s production needs in ending raw materials inventory. On January 1, Gentry had 9,000 boxes and 100,000 yards of wire in inventory. Refer to Figure 8-9. How many units does Gentry expect to produce in February?   Student  Response Value Correct  Answer Feedback 1.  24,250 100%       2.  30,500      3.  25,000      4.  23,750      5.  20,000      General  Feedback:   January February Sales 20,000 25,000 + Desired ending inventory (25%) 6,250 5,500 Units needed 26,250 30,500 - Beginning inventory* (25%) -5,000 -6,250 Production 21,250 24,250 *Jan. 1 beginning inventory = Dec. 31 ending inventory = (0.25)(20,000) = 5,000 Score: 0.5/0.5    2.

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Galvern Company provided the following data for July: Direct materials \$50,000 Direct labor \$25,000 Overhead \$90,000 Beginning finished goods \$15,000 Ending finished goods \$34,000 Production in units 10,000 What is the cost of goods sold?   Student  Response Value Correct  Answer Feedback 1.  \$165,000      2.  \$214,000      3.  \$75,000      4.  \$184,000      5.  \$146,000 100%       General  Feedback: Cost of goods manufactured = \$50,000 + \$25,000 + \$90,000 = \$165,000 Cost of goods sold = \$165,000 + \$15,000 - \$34,000 = \$146,000 Score: 0.5/0.5    3.
A company provided the following information on sales for the coming year:   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units 40,000 40,000 30,000 80,000 Average selling price \$5 \$5

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## This homework help was uploaded on 04/15/2008 for the course ACCT 2020 taught by Professor Lui during the Spring '08 term at North Texas.

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Quiz 8 - 1. Figure 8-9 Gentry Company produces speaker...

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