{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch 9 mc like questions with solutions

# Ch 9 mc like questions with solutions - Ch 9 Ch Practice...

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Ch 9 Ch Practice questions Ch 9 4. The following are budgeted purchases for the first quarter: Cash Purchases Credit Purchases Jan \$10,000 \$100,000 Feb \$15,000 \$120,000 Mar \$20,000 \$140,000 Expected Cash Disbursement for Materials 50% in month of purchase, 40% in month following purchase, 10% in second month following purchase What is the budgeted accounts payable balance on March 31? A) \$ 70,000 B) \$ 82,000. 2 Ch 9 4. The following are budgeted purchases for the first quarter: Cash Purchases Credit Purchases Jan \$10,000 \$100,000 Feb \$15,000 \$120,000 Mar \$20,000 \$140,000 Expected Cash Disbursement for Materials 50% in month of purchase, 40% in month following purchase, 10% in second month following purchase What is the budgeted accounts payable balance on March 31? A) \$ 70,000 B) \$ 82,000. Ans: (\$140,000x(40%+10%))+(\$120,000x10%)=\$82,000 3 Ch 9 5. Budgeted Sales (units) Required Production (units) October 20,000 26,000 November 50,000 ? December 30,000 29,0000 The management at Royal Company wants ending inventory to be equal to 20% of the following month’s 20% budgeted sales in units. budgeted There were 4,000 units were on hand on September 30th. What should be the budgeted required production for November? A) 46,000 units B) 56,000 units 4 Ch 9 5. Budgeted Sales (units) Required Production (units) October 20,000 26,000 November 50,000 ? December 30,000 29,0000 The management at Royal Company wants ending inventory to be equal to 20% of the following month’s 20% budgeted sales in units. budgeted There were 4,000 units were on hand on September 30th. What should be the budgeted required production for November? A) 46,000 units B) 56,000 units Answer A, 50000+(20% x 30000)-(20% x 50000)=46,000 units 5 Ch 9 6. Budgeted Production (in Units) Budgeted Raw Materials Purchases (kg) October 60,000 129,000 November 75,000 ? December 100,000 188,000 Two kgs of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. What should be the budgeted raw materials purchases for November? A) 210,000 kg. B) 165,000 kg. 6 Ch 9 6. Budgeted Production (in Units) Budgeted Raw Materials Purchases (kg) October 60,000 129,000 November 75,000 ? December 100,000 188,000 Two kgs of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. What should be the budgeted raw materials purchases for November? A) 210,000 kg. B) 165,000 kg. Ans : ((75000*2)+(100000*2*0.3)-(75000*2*0.3))=165,000 kg 7 Ch 9 7. Budgeted Production (in Units) Total Direct Labour Cost (\$) November 75,000 ? December 100,000 50,000 Each unit of product requires 0.05 hours (3 minutes) of direct labour. workers agree to a wage rate of \$10 per hour (assume no overtime pay). The direct labour workforce will be paid for a minimum of 4,000 hours per month. What is the total Direct Labour Cost for November? A) \$37,500. B) \$40,000. 8 Ch 9 7. Budgeted Production (in Units) Total Direct Labour Cost (\$) November 75,000 ? December 100,000 50,000 Each unit of product requires 0.05 hours (3 minutes) of direct labour. workers agree to a wage rate of \$10 per hour (assume no overtime pay). The direct labour workforce will be paid for a minimum of 4,000 hours per month. What is the total Direct Labour Cost for November? A) \$37,500. B) \$40,000. 75,000 x 0.05 = 3750 hrs <4000 hrs, 4000hrs x \$10= \$40,000 9 Ch 9 Budgeted activities for a merchandising company for Jan ‘10: Cash Sales budgeted are \$300,000. Budgeted depreciation for machinery is \$21,000. The cash balance at January 1 was \$37,000. Selling and administrative expenses are budgeted at Selling \$60,000, include \$10,000 depreciation on office furniture. \$60,000, No expected opening or ending inventory. Cost for merchandise purchased in \$120,000, all in cash. 8. What is the budgeted net income for January? A) \$ 99,000 B) \$ 20,000 9. What is the cash balance on January 31, 2010? A) \$ 99,000 B) \$ 167,000 A) B) 10 Ch 9 Budgeted activities for a merchandising company for Jan ‘10: Cash Sales budgeted are \$300,000. Budgeted depreciation for machinery is \$21,000. The cash balance at January 1 was \$37,000. Selling and administrative expenses are budgeted at Selling \$60,000, include \$10,000 depreciation on office furniture. \$60,000, No expected opening or ending inventory. Cost for merchandise purchased in \$120,000, all in cash. 8. What is the budgeted net income for January? A) \$ 99,000 B) \$ 20,000 9. What is the cash balance on January 31, 2010? A) \$ 99,000 B) \$ 167,000 A) B) Q8 Ans: A) 300,000Sales-21,000Dep’n-60,000SA-120,000purchases = \$99,000 Q8 Q9 Ans: B) 37,000Cash Jan1+300,000Sales-(60,000SA-10,000Dep)-120,000purch. = \$167,000 11 ...
View Full Document

{[ snackBarMessage ]}