Kyanite Company reports costs for 2017 as follows: \[\begin{array} { | l | l | } \hline \text { Raw materials } & \$ 56,500 \\ \hline \text { Wages to line workers } & 27,000 \\ \hline \text { Office rent } & 35,000 \\ \hline \text { Indirect materials } & 66,000 \\ \hline \end{array}\] How much are the total product costs for 2017?

A) $149,500 B) $66,000 C) $184,500 D) $83,500 A) $149,500 B) $66,000 C) $184,500 D) $83,500 A

Star Health Ltd is a fitness centre in Sydney City.In October,the company earned $556,000 in revenues and incurred the following operating costs from 400 customers: \[\begin{array} { | l | l | } \hline \text { Manager's salary } & \$ 51,000 \\ \hline \text { Gym rent } & 15,000 \\ \hline \text { Depreciation expense -equipment } & 16,800 \\ \hline \text { Office supplies } & 24,000 \\ \hline \text { Electricity and gas expense } & 60,000 \\ \hline \text { Trainer's salary } & 21,000 \\ \hline \end{array}\] How much is the unit cost per customer service?

A) $247.50 B) $469.50 C) $180.00 D) $1390.00 A) $247.50 B) $469.50 C) $180.00 D) $1390.00

Diemans Ltd has provided a part of its budget for the second quarter: \[\begin{array} { | l | l | l | l | } \hline & \text { Apr } & \text { May } & \text { Jun } \\ \hline \text { Cash collections } & \$ 40,000 & \$ 42,000 & \$ 40,000 \\ \hline \text { Cash payments } & & & \\ \hline \text { Purchases of inventory } & 5000 & 7200 & 7000 \\ \hline \text { Operating expenses } &6000 & 7000 &6 000 \\ \hline \text { Capital expenditures } & 4000 & 4600 & 4000 \\ \hline \end{array}\] The cash balance on 1 April is $14,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the cash balance at the end of April.

A) $85,200 B) $54,000 C) $62,200 D) $39,000 A) $85,200 B) $54,000 C) $62,200 D) $39,000

Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March: \[\begin{array} { | l | l | } \hline \text { Building rent expense } & \$ 5000 \\ \hline \text { Depreciation expense -equipment } & 1400 \\ \hline \text { Supplies expense } & 7500 \\ \hline \text { Electricity and gas expense } & 2350 \\ \hline \end{array}\] Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue. How much is the cost per service?

A) $3.33 B) $9.57 C) $10.83 D) $5.83 A) $3.33 B) $9.57 C) $10.83 D) $5.83

Crabapples Ltd purchases and sells dry fruit boxes.The following information summarises its operating activities for 2017: \[\begin{array} { | l | l | } \hline \text { Selling expenses } & \$ 9300 \\ \hline \text { Inventory on 31 December 2017 } & 33,000 \\ \hline \text { Inventory on 1 January 2017 } & 46,300 \\ \hline \text { Purchases of inventory } & 33,000 \\ \hline \text { Rent for store } & 12,800 \\ \hline \text { Sales commissions } & 7400 \\ \hline \text { Sales revenue } & 162,000 \\ \hline \end{array}\] If Crabapples sold 3000 boxes of dry fruit during the year,what is the cost per box of dry fruit?

A) $11.00 B) $32.10 C) $43.10 D) $54.00 A) $11.00 B) $32.10 C) $43.10 D) $54.00

Kyanite Company,a retailer,reports costs for 2017 as follows: \[\begin{array} { | l | l | } \hline \text { Raw materials } & \$ 62,500 \\ \hline \text { Wages to line workers } & 73,500 \\ \hline \text { Office rent } & 24,500 \\ \hline \text { Indirect materials } & 64,500 \\ \hline \end{array}\] How much are the total period costs of Kyanite?

A) $24,500 B) $73,500 C) $64,500 D) $62,500 A) $24,500 B) $73,500 C) $64,500 D) $62,500

Exam 19: Introduction to Managerial Accounting and the Master Budget

Kyanite Company reports costs for 2017 as follows: Raw materials \ 56,500 Wages to line workers 27,000 Office rent 35,000 Indirect materials 66,000 How much are the total product costs for 2017?

Free

(Multiple Choice)

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(30)

Question 1

Correct Answer:

Verified

A

A goal of the budgeting process is to promote coordination and communication throughout.

Free

(True/False)

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(39)

Question 2

Correct Answer:

Verified

True

The production budget must be prepared before any other component of the operating budget.

Free

(True/False)

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Question 3

Correct Answer:

Verified

False

The cash budget may be used to determine whether a company will need additional financing for the coming period.

(True/False)

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(38)

Question 4

The financial budget includes all of the following,EXCEPT the:

(Multiple Choice)

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Question 5

Star Health Ltd is a fitness centre in Sydney City.In October,the company earned $556,000 in revenues and incurred the following operating costs from 400 customers: Manager's salary \ 51,000 Gym rent 15,000 Depreciation expense -equipment 16,800 Office supplies 24,000 Electricity and gas expense 60,000 Trainer's salary 21,000 How much is the unit cost per customer service?

(Multiple Choice)

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Question 6

Which of the following is an example of a period cost?

(Multiple Choice)

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Question 7

Diemans Ltd has provided a part of its budget for the second quarter: Apr May Jun Cash collections \ 40,000 \ 42,000 \ 40,000 Cash payments Purchases of inventory 5000 7200 7000 Operating expenses 6000 7000 6000 Capital expenditures 4000 4600 4000 The cash balance on 1 April is $14,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the cash balance at the end of April.

(Multiple Choice)

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Question 8

Which of the following statements about budgeting is INCORRECT?

(Multiple Choice)

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Question 9

Managerial accounting includes the controlling function.Which of the following items would be part of the controlling function of a business's managerial accounting?

(Multiple Choice)

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Question 10

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

(Multiple Choice)

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Question 11

Which of the following budgets focuses on the income statement and its supporting schedules?

(Multiple Choice)

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Question 12

Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March: Building rent expense \ 5000 Depreciation expense -equipment 1400 Supplies expense 7500 Electricity and gas expense 2350 Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue. How much is the cost per service?

(Multiple Choice)

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Question 13

Service company managers may calculate the service unit cost to set their prices.

(True/False)

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Question 14

Crabapples Ltd purchases and sells dry fruit boxes.The following information summarises its operating activities for 2017: Selling expenses \ 9300 Inventory on 31 December 2017 33,000 Inventory on 1 January 2017 46,300 Purchases of inventory 33,000 Rent for store 12,800 Sales commissions 7400 Sales revenue 162,000 If Crabapples sold 3000 boxes of dry fruit during the year,what is the cost per box of dry fruit?

(Multiple Choice)

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Question 15

Budgets are compared to actual results in order to incorporate better informed business strategies into their future planning decisions.

(True/False)

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Question 16

Budgeting is a technique that is used to plan for future cash inflows and outflows.

(True/False)

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Question 17

Which of the following is an example of the benchmarking function of a budget?

(Multiple Choice)

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Question 18

Which of the following applies to goods that are partially completed?

(Multiple Choice)

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Question 19

Kyanite Company,a retailer,reports costs for 2017 as follows: Raw materials \ 62,500 Wages to line workers 73,500 Office rent 24,500 Indirect materials 64,500 How much are the total period costs of Kyanite?

(Multiple Choice)

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(26)

Question 20

Kyanite Company reports costs for 2017 as follows: Raw materials \ 56,500 Wages to line workers 27,000 Office rent 35,000 Indirect materials 66,000 How much are the total product costs for 2017?

A goal of the budgeting process is to promote coordination and communication throughout.

The production budget must be prepared before any other component of the operating budget.

The cash budget may be used to determine whether a company will need additional financing for the coming period.

The financial budget includes all of the following,EXCEPT the:

Which of the following is an example of a period cost?

Which of the following statements about budgeting is INCORRECT?

Managerial accounting includes the controlling function.Which of the following items would be part of the controlling function of a business's managerial accounting?

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Which of the following budgets focuses on the income statement and its supporting schedules?

Service company managers may calculate the service unit cost to set their prices.

Budgets are compared to actual results in order to incorporate better informed business strategies into their future planning decisions.

Budgeting is a technique that is used to plan for future cash inflows and outflows.

Which of the following is an example of the benchmarking function of a budget?

Which of the following applies to goods that are partially completed?

Kyanite Company,a retailer,reports costs for 2017 as follows: Raw materials \ 62,500 Wages to line workers 73,500 Office rent 24,500 Indirect materials 64,500 How much are the total period costs of Kyanite?

The Role of Accounting in Decision Making

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities,debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Formation and Shareholders Equity

Companies: Capital Management and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Job Costing

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

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