ACTG 2P21 Test 1,2,3 (9)

ACTG 2P21 Test 1,2,3 (9) - Use the following to answer...

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Unformatted text preview: \‘. Use the following to answer questions 5-7: Livanos, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2009 are: _-&5_ $280,000 r $90,000 - Customer amounts on account are collected ZQ‘jéjn the month of sale and 30% in the following month. * Cost of goods sold is‘60% of sales. ’ V - Livanos purchases and pays for merchandise. 40% in the month of acquisition and"60% in the following month. T H - - Operating expenses are: Salaries, $50,000, Amortization, $1§000¢Benn SILSJQQO; and CD Cl Utilities, slj,000;__ - Accounts payable is used only for inventory acquisitions. - 5. How muchis Livanos'May budgetedficcounts Begeiyable? D A) $320,000 L, B) $224,000 "’VC) $311,000 D) $96,000 Q6. How much cash will Livanos _r§§e§e_dm;ngMay from customers? " A) $224,000 “ B) $308,000 C) $311,000 D) $299,000 t: x c :‘J a. How much is Livanos' budgeted balance for Accounts Payable at May 30, 2009? C; A A) $5+;200 “*"“ B) $72,000 C) $76,800 D) $124,800 Version 2 Page 4 ‘u‘ <@ r) t? C10. . Razmataz Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last halfofthe year. The following budget data are available: Montth Fixed Cost Sales commissions $0.60 “' 3 $3,000 Shipping $1.20 Advertising 30.30 Amortization on office equipment $4,000 Other operating expenses $0.35 $34,000 Expenses are paid in the month incurred. If the company has budgeted to sell 2,000 umbrellas When how much is the total budgeted variablesellmgexpegses for October? A) $4,600 B) $1,800 C) $4,900 D) $41,000 . Harrah Company provided the following information for the month ofggolger; Beginning cash balance 3 35,000l Cash receipts 460,000 l Cash disbursements l 485,000 Harrah's policy is to keep a minimum engiofitheimonthcash balangepifilgflflg. How much will Harrah's need to borrow during August? A) $20,000 B) so C) $25,000 D) $10,000 Nextel Company showed the following on its direct materials budget for June: Units to be produced 30,000, Total kilograms needed for production [4 '\. Total kilograms of materials to be purchased 53,000. J v ‘3’ The materials cost $3 per kilogram. How much is the cost of per unit? A) $37.5 B) $30 C) $0.24 D) $0.30 Version 2 Page 5 ...
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