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“The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit variable cost of $18. The company has budgeted the following data for November: I. Sales of $1,152,000, all in cash. II. A cash balance on November 1 of $48,000. III. Cash disbursements (other than interest) during November of $1,160,000. IV. A minimum cash balance on November 30 of $60,000. If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.93. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: a. $20,000. b. $21,000. c. $37,000. d. $38,000.”,”2. The amount of cash needed to be borrowed on November 1, :Cash balance 11/1 $48,000+ Sales 1,152,000Total 1,200,000- Cash disbursements 1,16,000Available cash at end of month $40,000Because the minimum balance required is $60000, Calquist Company needs to borrow $21
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Read more“The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit variable cost of $18. The company has budgeted the following data for November: I. Sales of $1,152,000, all in cash. II. A cash balance on November 1 of $48,000. III. Cash disbursements (other than interest) during November of $1,160,000. IV. A minimum cash balance on November 30 of $60,000. If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.92. The number of units of Product A budgeted to be sold during November is: a. 48,000 units b. 38,000 units c. 64,000 units. d. 48,500 units.”,”1Number of units budgeted to be sold in November: = Sales / Unit sales price= 1,152,000 / 24 = 48
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Read more“The Yost Company makes and sells a single product, Product A. Each unit of Product A requires 1.2 hours of labor at a labor rate of 8.40 per hour. Yost Company needs to prepare a Direct Labor Budget for the second quarter of 19×6. 91. The budgeted direct labor cost per unit of Product A would be: a. $8.40. b. $7.00. c. $10.08 d. $9.60”
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Read more“Young Enterprises has budgeted sales in units for the next five months as follows: June 4,600 units July 7,200 units August 5,400 units September 6,800 units October 3,800 units Past experience has shown that the ending inventory for each month must be equal to 10% of the next month’s sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a Production Budget for the second quarter of the year. 90. The total number of units to be produced in July is: a. 7,740 units. b. 7,200 units. c. 7,020 units. d. 7,280 units.”,”3Total units to be produced in July: July Sales 7,200 + Desired ending inventory (5,400 x 10%) 540 7,740- Beginning inventory = Desired ending inventory for June (7200 x 10%) 720 Units to be graded in July 7
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Read more“Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: August 14,000 units September 14,500 units October 15,500 units November 12,600 units December 11,900 units The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month’s production needs. On July 31, 2,500 yards of Material K were on hand. The cost of Material K is $.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the fourth quarter. 89. The total needs of Material K for the month of November are: a. 37,800 yards b. 44,940 yards c. 37,380 yards. d. 45,360 yards.”,”2Total needs of material K for the month of November: October November DecemberBudgeted production 15,500 12,600 11,900Per unit needs of K 3 3 3 Production Needs 46,500 37,800 35,700+ Desired Ending Inv. 7,560 7,140 — Beginning Inv. 7,560Total Needs of K for November 37
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Read more“Kosco Corporation Income StatementþAbsorption Costing For the Month Ended March 31, 19×4 Sales (2,400 units) $48,000 Cost of goods sold: Beginning Inventory $ 1,000 Variable Cost of Goods Manufactured 25,000 Goods Available for Sale $26,000 Ending Inventory 2,000 Cost of Goods Sold 24,000 Gross Margin 24,000 Less Operating Expenses: Fixed Administrative Expense $7,200 Variable Selling Expense 9,600 Total Operating Expenses 16,800 Net Income $ 7,200 ÍÍÍÍÍÍÍ During March, the company’s variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. 88. The break-even point in units for the month would be a. 600 units. b. 900 units. c. 1,017 units. d. 1,525 units.”,”4The break-even point in units:Total fixed costs = 5,000 + 7,000 = $12,200Break-even point in units = Total fixed costs = 12,200 = 1
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Kosco Corporation Income StatementþAbsorption Costing[…]
Read more“Kosco Corporation Income StatementþAbsorption Costing For the Month Ended March 31, 19×4 Sales (2,400 units) $48,000 Cost of goods sold: Beginning Inventory $ 1,000 Variable Cost of Goods Manufactured 25,000 Goods Available for Sale $26,000 Ending Inventory 2,000 Cost of Goods Sold 24,000 Gross Margin 24,000 Less Operating Expenses: Fixed Administrative Expense $7,200 Variable Selling Expense 9,600 Total Operating Expenses 16,800 Net Income $ 7,200 ÍÍÍÍÍÍÍ During March, the company’s variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. 87. The contribution margin per unit during March was a. $8 b. $12 c. $10 d. $3”,”1The contribution margin per unit during March:Selling price per unit (48
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Read more“Elbrege Company manufactures a single product. Assume the following data for 19×4: Fixed costs in total: Selling and Administrative $50,000 Production $75,000 Variable costs per unit: Selling and Administrative $4 Production $7 There were no units in inventory on January 1. During the year 25,000 units were produced and 20,000 units were sold. Page 24 Version 1 86. Assume that the selling price Elbrege Company’s product is $30 per unit. The company’s net income for 19×4 under variable costing would be: a. $255,000 b. $270,000 c. $200,000 d. $280,000”,”1The company’s net income for 19×4 under variable costing:Sales (20000 x 30) $600,000 Less Variable Costs: Manufacturing (20000 x 7) 140,000 Selling (20000 x 4) 80,000 220,000Contribution Margin 380,000 Less Fixed Costs: Manufacturing 75,000 Selling 50,000 125,000Net Income $255
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Read more“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 85. Under variable costing, the company’s net income for the year would be a. $101,250 lower than under absorption costing. b. $60,000 lower than under absorption costing. c. $101,250 higher than under absorption costing. d. $60,000 higher than under absorption costing.”,”2Difference between production and sales:20,000 – 15,000 = 5,000 unitsPer unit fixed overhead = 240,000 = $12 / unit 20,000 Production > Sales Absorption Net Income > Variable Net Income By 5,000 x 12 = $60
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“During 19×2, Krepps Company manufactured[…]
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