Caplico Company has prepared the following sales budget: \[\begin{array} { | l | l | } \hline \text { Month } & { \text { Budgeted sales } } \\ \hline \text { March } & \$ 500,000 \\ \hline \text { April } & 190,000 \\ \hline \text { May } & 248,000 \\ \hline \text { June } & 233,000 \\ \hline \end{array}\] Cost of sales is budgeted at 50% of sales and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of sales.What is the desired beginning inventory on 1 June?

A) $11,650 B) $23,300 C) $12,400 D) $112,000 A) $11,650 B) $23,300 C) $12,400 D) $112,000

The following information was obtained from Fizz Company: \[\begin{array} { | l | l | } \hline \text { Advertising costs } & \$ 9100 \\ \hline \text { Indirect labour } & 3600 \\ \hline \text { CEO's salary } & 61,000 \\ \hline \text { Direct labour } & 40,000 \\ \hline \text { Indirect materials } & 5000 \\ \hline \text { Direct materials used } & 60,000 \\ \hline \text { Factory electricity and gas } & 520 \\ \hline \text { Factory janitorial costs } & 1800 \\ \hline \text { Manufacturing equipment depreciation } & 1200 \\ \hline \text { Delivery vehicle depreciation } & 1700 \\ \hline \text { Administrative wages and salaries } & 20,000 \\ \hline \end{array}\] Calculate Fizz's total product costs.

A) $110,600 B) $114,120 C) $100,000 D) $91,800 A) $110,600 B) $114,120 C) $100,000 D) $91,800

Fireox Company's selected cost data for 2017 are shown below: \[\begin{array} { | l | l | } \hline \text { Work in process inventory, } 1 \text { Jan } 2017 & \$ 5880 \\ \hline \text { Direct materials used } & 105,000 \\ \hline \text { Work in process inventory, } 31 \text { Dec } 2017 & 2780 \\ \hline \text { Cost of goods manufactured } & 193,300 \\ \hline \end{array}\] Assuming manufacturing overhead costs of $27,810,what is the amount of direct labour incurred by Fireox Company in 2017?

A) $57,390 B) $190,200 C) $60,490 D) 883$132,810 A) $57,390 B) $190,200 C) $60,490 D) 883$132,810

Crystal Ltd is a retailer of stone ornaments.The company sold 15,200 units in 2017.The company has provided the following information: \[\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 554,000 \\ \hline \text { Purchases (excluding freight in) } & 290,000 \\ \hline \text { Selling and administrative expenses } & 68,000 \\ \hline \text { Freight in } & 14,000 \\ \hline \text { Beginning inventory } & 49,000 \\ \hline \text { Ending inventory } & 53,400 \\ \hline \end{array}\] What is the cost per unit sold?

A) $23.22 B) $20.00 C) $16.49 D) $19.71 A) $23.22 B) $20.00 C) $16.49 D) $19.71

Exam 19: Introduction to Managerial Accounting and the Master Budget

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

(Multiple Choice)

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Question 141

When a company is preparing a budgeted cash flow statement and it wishes to calculate the payments to suppliers for purchases of inventory,it should refer to which of the following?

(Multiple Choice)

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Question 142

Kapital Ltd has prepared the operating budget for the first quarter of 2017.The company forecasts sales of $50,000 in January,$60,000 in February and $70,000 in March.Variable and fixed expenses are as follows: Variable: electricity cost (40% of sales) Miscellaneous expenses: (10% of sales) Fixed: salary expense: $8000 per month Rent expense: $4000 per month Depreciation expense: $1200 per month Electricity cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1200 per month Calculate total operating expenses for the month of January.

(Multiple Choice)

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Question 143

Caplico Company has prepared the following sales budget: Month Budgeted sales March \ 500,000 April 190,000 May 248,000 June 233,000 Cost of sales is budgeted at 50% of sales and the inventory at the end of February was $34,000.Desired inventory levels at the end of each month are 10% of the next month's cost of sales.What is the desired beginning inventory on 1 June?

(Multiple Choice)

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Question 144

The following information was obtained from Fizz Company: Advertising costs \ 9100 Indirect labour 3600 CEO's salary 61,000 Direct labour 40,000 Indirect materials 5000 Direct materials used 60,000 Factory electricity and gas 520 Factory janitorial costs 1800 Manufacturing equipment depreciation 1200 Delivery vehicle depreciation 1700 Administrative wages and salaries 20,000 Calculate Fizz's total product costs.

(Multiple Choice)

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Question 145

A company has prepared the operational budget and the cash budget and is now preparing the budgeted balance sheet.To provide the balance for the Cash account,which document should be used?

(Multiple Choice)

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Question 146

Management is accountable to its suppliers and vendors in which of the following ways?

(Multiple Choice)

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Question 147

The wages and benefits of the factory cleaners are included in manufacturing overhead.

(True/False)

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Question 148

Indirect materials costs like lubricants and cleaning fluids are included in manufacturing overhead.

(True/False)

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Question 149

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

(True/False)

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Question 150

Budgeted financial statements are financial statements based on budgeted amounts rather than actual amounts.

(True/False)

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Question 151

Budget preparation is a part of the planning process.

(True/False)

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Question 152

Which of the following best describes the term sensitivity analysis?

(Multiple Choice)

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Question 153

Which of the following is NOT a period cost?

(Multiple Choice)

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Question 154

Fireox Company's selected cost data for 2017 are shown below: Work in process inventory, 1 Jan 2017 \ 5880 Direct materials used 105,000 Work in process inventory, 31 Dec 2017 2780 Cost of goods manufactured 193,300 Assuming manufacturing overhead costs of $27,810,what is the amount of direct labour incurred by Fireox Company in 2017?

(Multiple Choice)

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Question 155

Which of the following describes the inventory,purchases,and cost of sales budget?

(Multiple Choice)

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Question 156

The wages and benefits of the factory manager are included in manufacturing overhead.

(True/False)

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Question 157

The starting point in the budgeting process is the preparation of the:

(Multiple Choice)

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Question 158

Crystal Ltd is a retailer of stone ornaments.The company sold 15,200 units in 2017.The company has provided the following information: Sales revenue \ 554,000 Purchases (excluding freight in) 290,000 Selling and administrative expenses 68,000 Freight in 14,000 Beginning inventory 49,000 Ending inventory 53,400 What is the cost per unit sold?

(Multiple Choice)

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Question 159

A budget focuses primarily on financial information but does not reflect specific business strategies.

(True/False)

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Question 160

Showing 141 - 160 of 170

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

When a company is preparing a budgeted cash flow statement and it wishes to calculate the payments to suppliers for purchases of inventory,it should refer to which of the following?

A company has prepared the operational budget and the cash budget and is now preparing the budgeted balance sheet.To provide the balance for the Cash account,which document should be used?

Management is accountable to its suppliers and vendors in which of the following ways?

The wages and benefits of the factory cleaners are included in manufacturing overhead.

Indirect materials costs like lubricants and cleaning fluids are included in manufacturing overhead.

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

Budgeted financial statements are financial statements based on budgeted amounts rather than actual amounts.

Budget preparation is a part of the planning process.

Which of the following best describes the term sensitivity analysis?

Which of the following is NOT a period cost?

Which of the following describes the inventory,purchases,and cost of sales budget?

The wages and benefits of the factory manager are included in manufacturing overhead.

The starting point in the budgeting process is the preparation of the:

A budget focuses primarily on financial information but does not reflect specific business strategies.

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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