B 210000 c 157500 d 105000 89 cso 1b5a los 1b5i over

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b. $210,000. c. $157,500. d. $105,000. 89. CSO: 1B5a LOS: 1B5i Over the past several years, McFadden Industries has experienced the following regarding the company’s shipping expenses. Fixed costs $16,000 Average shipment 15 pounds Cost per pound $.50 Shown below are McFadden’s budget data for the coming year. Number of units shipped 8,000 Number of sales orders 800 Number of shipments 800 Total sales $1,200,000 Total pounds shipped 9,600 McFadden’s expected shipping costs for the coming year are a. $4,800. b. $16,000. c. $20,000. d. $20,800.
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34 90. CSO: 1B5a LOS: 1B5g Swan Company is a maker of men's slacks. The company would like to maintain 20,000 yards of fabric in ending inventory. The beginning fabric inventory is expected to contain 25,000 yards. The expected yards of fabric needed for sales is 90,000. Compute the yards of fabric that Swan needs to purchase. a. 85,000. b. 90,000. c. 95,000. d. 135,000. 91. CSO: 1B5a LOS: 1B5g Manoli Gift Shop maintains a 35% gross profit margin percentage, and carries an ending inventory balance each month sufficient to support 30% of the next month’s expected sales. Anticipated sales for the fourth quarter are as follows. October $42,000 November 58,000 December 74,000 What amount of goods should Manoli Gift Shop plan to purchase during the month of November? a. $40,820. b. $51,220. c. $52,130. d. $62,800. 92. CSO: 1B5a LOS: 1B5g In preparing the direct material purchases budget for next quarter, the plant controller has the following information available. Budgeted unit sales 2,000 Pounds of materials per unit 4 Cost of materials per pound $3 Pounds of materials on hand 400 Finished units on hand 250 Target ending units inventory 325 Target ending inventory of pounds of materials 800 How many pounds of materials must be purchased? a. 2,475. b. 7,900. c. 8,700. d. 9,300.
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35 93. CSO: 1B5a LOS: 1B5g Playtime Toys estimates that it will sell 200,000 dolls during the coming year. The beginning inventory is 12,000 dolls; the target ending inventory is 15,000 dolls. Each doll requires two shoes which are purchased from an outside supplier. The beginning inventory of shoes is 20,000; the target ending inventory is 18,000 shoes. The number of shoes that should be purchased during the year is a. 396,000 shoes. b. 398,000 shoes. c. 402,000 shoes. d. 404,000 shoes. 94. CSO: 1B5a LOS: 1B5g Maker Distributors has a policy of maintaining inventory at 15% of the next month’s forecasted sales. The cost of Maker’s merchandise averages 60% of the selling price. The inventory balance as of May 31 is $63,000, and the forecasted dollar sales for the last seven months of the year are as follows. June $700,000 July 600,000 August 650,000 September 800,000 October 850,000 November 900,000 December 840,000 What is the budgeted dollar amount of Maker’s purchases for July? a. $355,500. b. $360,000. c. $364,500. d. $399,000. 95. CSO: 1B5a LOS: 1B5m All of the following would appear on a projected schedule of cost of goods manufactured except for a. ending work-in-process inventory. b. beginning finished goods inventory. c. the cost of raw materials used.
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