B 4000 c 4300 d cso 1b5a los 1b5f krouse company is

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b. 4,000. c. 4,300. d. 4,600.
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31 85. CSO: 1B5a LOS: 1B5f Krouse Company is in the process of developing its operating budget for the coming year. Given below are selected data regarding the company’s two products, laminated putter heads and forged putter heads, that are sold through specialty golf shops. Putter Heads Forged Laminated Raw materials Steel 2 pounds @ $5/lb. 1 pound @ $5/lb. Copper None 1 pound @ $15/lb. Direct labor 1/4 hour @ $20/hr. 1 hour @ $22/hr. Expected sales (units) 8,200 2,000 Selling price per unit $30 $80 Ending inventory target (units) 100 60 Beginning inventory (units) 300 60 Beginning inventory (cost) $5,250 $3,120 Manufacturing overhead is applied to units produced on the basis of direct labor hours. Variable manufacturing overhead is projected to be $25,000, and fixed manufacturing overhead is expected to be $15,000. The estimated cost to produce one unit of the laminated putter head is a. $42. b. $46. c. $52. d. $62.
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32 86. CSO: 1B5a LOS: 1B5d Tidwell Corporation sells a single product for $20 per unit. All sales are on account, with 60% collected in the month of sale and 40% collected in the following month. A partial schedule of cash collections for January through March of the coming year reveals the following receipts for the period. Cash Receipts January February March December receivables $32,000 From January sales 54,000 $36,000 From February sales 66,000 $44,000 Other information includes the following. Inventories are maintained at 30% of the following month’s sales. Assume that March sales total $150,000. The number of units to be purchased in February is a. 3,850 units. b. 4,900 units. c. 6,100 units. d. 7,750 units. 87. CSO: 1B5a LOS: 1B5i Stevens Company manufactures electronic components used in automobile manufacturing. Each component uses two raw materials, Geo and Clio. Standard usage of the two materials required to produce one finished electronic component, as well as the current inventory, are shown below. Standard Material Per Unit Price Current Inventory Geo 2.0 pounds $15/lb. 5,000 pounds Clio 1.5 pounds $10/lb. 7,500 pounds Stevens forecasts sales of 20,000 components for each of the next two production periods. Company policy dictates that 25% of the raw materials needed to produce the next period’s projected sales be maintained in ending direct materials inventory. Based on this information, the budgeted direct material purchases for the coming period would be Geo Clio a. $450,000 $450,000. b. $675,000 $300,000. c. $675,000 $400,000. d. $825,000 $450,000.
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33 88. CSO: 1B5a LOS: 1B5i Petersons Planters Inc. budgeted the following amounts for the coming year. Beginning inventory, finished goods $ 10,000 Cost of goods sold 400,000 Direct material used in production 100,000 Ending inventory, finished goods 25,000 Beginning and ending work-in-process inventory Zero Overhead is estimated to be two times the amount of direct labor dollars. The amount that should be budgeted for direct labor for the coming year is a. $315,000.
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