Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information: \[\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 593,000 \\ \hline \text { Purchases (excluding freight in) } & 302,000 \\ \hline \text { Selling and administrative expenses } & 66,000 \\ \hline \text { Freight in } & 13,000 \\ \hline \text { Beginning inventory } & 44,000 \\ \hline \text { Ending inventory } & 42,000 \\ \hline \end{array}\] What is the operating profit for 2017?

A) $210,000 B) $276,000 C) $317,000 D) $527,000 A) $210,000 B) $276,000 C) $317,000 D) $527,000

Jasper Ltd reports the following cost information for March: \[\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 74,800 \\ \hline \text { Manufacturing overhead } & 19,000 \\ \hline \text { Finished goods inventory, 1 March } & 4500 \\ \hline \text { Finished goods inventory, 31 March } & 2800 \\ \hline \text { Work in process inventory, 1 March } & 9300 \\ \hline \text { Work in process inventory, 31 March } & 1200 \\ \hline \text { Direct materials used } & 25,100 \\ \hline \end{array}\] What is the cost of sales for March?

A) $76,500 B) $79,300 C) $73,100 D) $3200 A) $76,500 B) $79,300 C) $73,100 D) $3200

Barricades Company provided the following information for the year 2017: \[\begin{array} { | l | l | } \hline \text { Beginning balance -work in process inventory } & \$ 25,000 \\ \hline \text { Ending balance - work in process inventory } & 58,000 \\ \hline \text { Beginning balance - raw materials inventory } & 82,000 \\ \hline \text { Ending balance - raw materials inventory } & 59,000 \\ \hline \text { Purchases - raw materials } & 357,000 \\ \hline \text { Direct labour } & 468,000 \\ \hline \text { Indirect materials } & 45,000 \\ \hline \text { Indirect labour } & 20,000 \\ \hline \text { Depreciation on factory plant \& equipment } & 24,000 \\ \hline \text { Plant electricity, gas \& insurance } & 272,000 \\ \hline \end{array}\] What was the amount of direct materials used in production during 2017?

A) $380,000 B) $825,000 C) $65,000 D) $357,000 A) $380,000 B) $825,000 C) $65,000 D) $357,000

Delleate Ltd has prepared the following purchases budget: \[\begin{array} { | l | l | } \hline \text { Month } & \text { Budgeted purchases } \\ \hline \text { June } & \$ 69,000 \\ \hline \text { July } & 72,500 \\ \hline \text { August } & 76,900 \\ \hline \text { September } & 78,900 \\ \hline \text { October } & 77,200 \\ \hline \end{array}\] All purchases are paid for as follows: 10% in the month of purchase,50% in the following month and 40% two months after purchase.Calculate total cash payments made in October for purchases.

A) $47,170 B) $77,930 C) $38,480 D) $70,210 A) $47,170 B) $77,930 C) $38,480 D) $70,210

Amoeba Manufacturing Ltd provided the following information for the year 2017: \[\begin{array} { | l | l | } \hline \text { Purchases-raw materials } & \$ 90,000 \\ \hline \text { Plant electricity, gas \& insurance } & 66,500 \\ \hline \text { Indirect materials } & 11,020 \\ \hline \text { Indirect labour } & 4220 \\ \hline \text { Direct materials used in production } & 99,000 \\ \hline \text { Direct labour } & 118,000 \\ \hline \text { Depreciation on factory plant \& equipment } &6000 \\ \hline \end{array}\] The inventory account balances as of 1 January 2017 are given below. \[\begin{array} { | l | l | } \hline \text { Raw materials inventory } & \$ 41,000 \\ \hline \text { Work in process inventory } & 13,000 \\ \hline \text { Finished goods inventory } & 50,000 \\ \hline \end{array}\] What is the ending balance in the Raw materials inventory account?

A) $20,980 B) $110,020 C) $7000 D) $131,000 A) $20,980 B) $110,020 C) $7000 D) $131,000

Exam 19: Introduction to Managerial Accounting and the Master Budget

A3+ has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections \ 49,000 \ 39,900 \ 47,600 Cash payments Purchases of inventory 29,000 21,700 17,700 Operating expenses 12,400 9100 11,400 Capital expenditures 13,200 24,300 0 The cash balance on 30 June is projected to be $4200.The company has to maintain a minimum cash balance of $5,000 and is authorised to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%.All financing transactions are assumed to take place at the end of the month.The loan balance should be repaid in increments of $5,000 whenever there is surplus cash.Calculate the final projected cash balance at the end of September.

(Multiple Choice)

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Question 101

Which of the following is TRUE for a service company?

(Multiple Choice)

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Question 102

South State Company used $76,500 of direct materials and incurred $37,200 of direct labour costs during 2017.Indirect labour amounted to $2720 while indirect materials used totalled $5290.Other operating costs pertaining to the factory included electricity & gas of $4020,maintenance of $3599; repairs of $5335; depreciation of $8040; and,property taxes of $3512.There was no beginning or ending finished goods inventory,but work in process inventory began the year with a $5300 balance and ended the year with a $7700 balance. How much is the cost of goods manufactured?

(Multiple Choice)

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Question 103

Which of the following properly describes the accounting for corporate headquarters' property rates?

(Multiple Choice)

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Question 104

A company used $34,000 of direct materials,incurred $73,000 in direct labour cost and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $27,000 and $21,500 respectively,what is the cost of goods manufactured?

(Multiple Choice)

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Question 105

Which of the following is a philosophy of providing customers with superior products and services?

(Multiple Choice)

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Question 106

Which of the following costs would appear on the income statements for both a retailer and a manufacturer?

(Multiple Choice)

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Question 107

Which of the following is useful to combine the data of different segments using different software for the purpose of creating company-wide budgets?

(Multiple Choice)

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Question 108

Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information: Sales revenue \ 593,000 Purchases (excluding freight in) 302,000 Selling and administrative expenses 66,000 Freight in 13,000 Beginning inventory 44,000 Ending inventory 42,000 What is the operating profit for 2017?

(Multiple Choice)

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Question 109

Jasper Ltd reports the following cost information for March: Cost of goods manufactured \ 74,800 Manufacturing overhead 19,000 Finished goods inventory, 1 March 4500 Finished goods inventory, 31 March 2800 Work in process inventory, 1 March 9300 Work in process inventory, 31 March 1200 Direct materials used 25,100 What is the cost of sales for March?

(Multiple Choice)

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Question 110

Accounting,legal and administrative costs are included in manufacturing overhead.

(True/False)

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Question 111

Which of the following describes the term cost object?

(Multiple Choice)

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Question 112

The cost of sales for Frye Manufacturing in 2017 was $213,000.The 1 January 2017 finished goods inventory balance was $30,800 and the 31 December 2017 finished goods inventory balance was $24,500.Calculate the cost of goods manufactured during 2017.

(Multiple Choice)

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Question 113

Which of the following describes the cost of goods manufactured?

(Multiple Choice)

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Question 114

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

(Multiple Choice)

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Question 115

Factory rent,taxes and insurance are included in manufacturing overhead.

(True/False)

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Question 116

Barricades Company provided the following information for the year 2017: Beginning balance -work in process inventory \ 25,000 Ending balance - work in process inventory 58,000 Beginning balance - raw materials inventory 82,000 Ending balance - raw materials inventory 59,000 Purchases - raw materials 357,000 Direct labour 468,000 Indirect materials 45,000 Indirect labour 20,000 Depreciation on factory plant \& equipment 24,000 Plant electricity, gas \& insurance 272,000 What was the amount of direct materials used in production during 2017?

(Multiple Choice)

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Question 117

Delleate Ltd has prepared the following purchases budget: Month Budgeted purchases June \ 69,000 July 72,500 August 76,900 September 78,900 October 77,200 All purchases are paid for as follows: 10% in the month of purchase,50% in the following month and 40% two months after purchase.Calculate total cash payments made in October for purchases.

(Multiple Choice)

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Question 118

Amoeba Manufacturing Ltd provided the following information for the year 2017: Purchases-raw materials \ 90,000 Plant electricity, gas \& insurance 66,500 Indirect materials 11,020 Indirect labour 4220 Direct materials used in production 99,000 Direct labour 118,000 Depreciation on factory plant \& equipment 6000 The inventory account balances as of 1 January 2017 are given below. Raw materials inventory \ 41,000 Work in process inventory 13,000 Finished goods inventory 50,000 What is the ending balance in the Raw materials inventory account?

(Multiple Choice)

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Question 119

The budgeted cash collections for the current month typically take into consideration collections pertaining to credit sales of prior months.

(True/False)

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Question 120

Which of the following is TRUE for a service company?

Which of the following properly describes the accounting for corporate headquarters' property rates?

A company used $34,000 of direct materials,incurred $73,000 in direct labour cost and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $27,000 and $21,500 respectively,what is the cost of goods manufactured?

Which of the following is a philosophy of providing customers with superior products and services?

Which of the following costs would appear on the income statements for both a retailer and a manufacturer?

Which of the following is useful to combine the data of different segments using different software for the purpose of creating company-wide budgets?

Accounting,legal and administrative costs are included in manufacturing overhead.

Which of the following describes the term cost object?

The cost of sales for Frye Manufacturing in 2017 was $213,000.The 1 January 2017 finished goods inventory balance was $30,800 and the 31 December 2017 finished goods inventory balance was $24,500.Calculate the cost of goods manufactured during 2017.

Which of the following describes the cost of goods manufactured?

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

Factory rent,taxes and insurance are included in manufacturing overhead.

The budgeted cash collections for the current month typically take into consideration collections pertaining to credit sales of prior months.

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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