13. Bean Manufacturing reported the following information for 2012: October Nove
ID: 2381608 • Letter: 1
Question
13. Bean Manufacturing reported the following information for 2012:
October November December
Budgeted purchases $180,000 $192,000 $216,000
Operating expenses are: Salaries $75,000 Depreciation $30,000 Rent $15,000 Utilities, 21,000
Operating expenses are paid during the month incurred.
Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in november?
A. $141,000
B. $333,000
C. $111,000
D $303,000
16. Correy Company reported the following information for 2012:
October November December
Budgeted sales $230,000 $220,000 $270,000
Budgeted purchases $120,000 $128,000 $144,000
Cost of goods sold is 35% of sales.
Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts payable at October 31, 2012?
A. $72,000
B. $102,000
C. $51,200
D. $48,000
17. Taffy Industries is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Taffy insudstries requires a 10% rate of return.
Present value of an annuity of 1
Period.... 8%....9%.....10%....11%....12%.....15%.....
....6....4.623...4.486..4.355..4.231...4.111...3.784
What is the approximate net present value of this investment?
A. $5,496
B. $3,584
C. $1,772
D. $27,600
18. A department has budgeted monthly manufacturing overhead cost of $180,000 plus $3 per direct labor hour. If a flexible budget reflects $348,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was
A. 176.000 direct labor hours
B. 56,000 direct labor hours
C. 116,000 direct labor hours
D. Cannot be determined from the information provided.
19. Cheery China Manufacturing Company reported the following year-end information:
Beginning work in process inventory $35000
Beginning raw materials inventory $18000
Ending work in process inventory 38000
Ending raw materials inventory 15000
Raw materials purchased 560000
Direct labor 180000
manufacturing overhead 75000
How much is Cheery china manufacturing's total cost of work in process for the year?
A. 815000
B. 853000
C. 818000
D. 563000
26.Justin industries produces three versions of tires: supreme, advanced, and basic. A condensed segmented income statement for a recent period follows:
Supreme advance basic total
Sales $1,000,000 $400,000 $130,000 #1,530,000
Variable expenses 650,000 280,000 116,000 1,046,000
Contribution margin 350,000 120,000 14,000 484,000
Fixed expenses 150,000 70,000 44,000 264,000
Net income (loss) $200,000 $50,000 $(30,000) $220,000
A. $206,000
B. $280,000
C. $210,000
D. $250,000
Explanation / Answer
13) budgeted amount of cash to be paid for operating expenses in november = 75000 + 15000 + 21000 = $111000
Option C is correct
16) budgeted balance for Accounts payable at October 31, 2012 = $120,000 x (1 - 0.6) = $48000
Option D is correct
17) approximate net present value of this investment = (14,600 x 4.355) - 60000 = $3584
Option B is correct
18) the actual level of activity achieved during the month was = ( 348000 - 180000) / 3 = 56000 hrs
option B (B. 56,000 direct labor hours) is correct
19) Cheery china manufacturing's total cost of work in process for the year =
(18000 + 560000 - 15000) + 180000 + 35000 - 38000 + 75000 = $815000
Option A(A. 815000) is correct
26) No Clarity in Question
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