Acctg 305 Fall 2010 Practice Test Ch8-9

# Acctg 305 Fall 2010 Practice Test Ch8-9 - Accounting 305...

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Accounting 305 – Cost Accounting Name School of Management Date Fall 2010 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is the most common starting point in the information gathering process for budgeting? a. the personnel forecast b. the sales forecast c. the production forecast d. the projected income statement ____ 2. General Corporation manufactures boxes. The estimated number of boxes sold for the first three months of 20011 are: Month Sales January 3,000 February 4,200 March 3,900 Finished goods inventory at the end of December was 900 units. Ending finished goods inventory is equal to 20 percent of the next month's sales. General Corporation expects to sell the boxes for \$5 each. April 2006 sales is projected at 4,500 boxes. What is the expected sales revenue for March? a. \$15,000 b. \$21,000 c. \$19,500 d. \$4,500 Oriental Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of 2009 are as follows: Month Sales October 10,000 November 14,000 December 13,000 3/12/12 Acctg 305 Fall 2010 Practice Test Ch8-9.rtf Page 1 of 24

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Finished goods inventory at the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. Oriental lamp expects to sell the lamps for \$25 each. January 2010 sales is projected at 16,000 lamps. ____ 3. How many lamps should be produced in November? a. 11,000 lamps b. 10,500 lamps c. 14,000 lamps d. 13,750 lamps Gerald Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. ____ 4. How many units of A2 are expected in the raw material inventory at the end of the second month? a. 30 units b. 45 units c. 40 units d. 35 units ____ 5. Based on this information, the number of units of A1 that needs to be purchased by Gerald during the first month is a. 9,500 units. b. 10,000 units. c. 1,000 units. d. 10,500 units. Jordan Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: Direct materials 3 lb. @ \$5 = \$15 Direct labor 1 hr @ \$6 = \$6 Variable overhead 75% of direct labor costs Fixed overhead 50% of direct labor costs ____ 6. What is the total amount of direct labor included in the direct labor budget? a. \$6,000 b. \$28,500 c. \$6 d. \$7,500 3/12/12 Acctg 305 Fall 2010 Practice Test Ch8-9.rtf Page 2 of 24
____ 7. What is the total amount of overhead included in the overhead budget? a.

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Acctg 305 Fall 2010 Practice Test Ch8-9 - Accounting 305...

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