Question
1.
Eagle Company is considering the purchase of an asset for S100,000. It is expected to produce the following net cash flow year. Compute the payback period for this investment. (Round to two decimal places.) 2.85 years. 2.57 years. 3.00 years. 2.50 years. 3.62 years. A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Total June sales are anticipated to be: $63,000. $67,500. $61,250. $74,250. $60,000. Sherman Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 6 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for this company? 84,000 units of A and 60,000 units of Z. 48,000 units of A and 80,000 units of Z. 60,000 units of A and 100,000 units of Z. 120,000 units of A and 0 units of Z. 0 units of A and 200,000 units of Z. The master budget is a small component of the comprehensive budget. True False Kyoto, Inc. predicts the following sales in units for the coming four months: Sales in units............ April/240 May/280 June/300 July/240 Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs. The budgeted production for May is: 200 units. 212 units. 268 units. 280 units. 292 units. If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400. and cost of goods sold is expected to be $10,260, then budgeted purchases should be $9,160. True False Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are (Do not round intermediate calculations): $125,000 fixed and $102,500 variable. $125,000 fixed and $123,000 variable. $102,500 fixed and $150,000 variable. $150,000 fixed and $123,000 variable. $150,000 fixed and $102,500 variable. Kent Company anticipates total sales for April, May, and June of $800,000, $900,000 and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale. 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales for June. $561,500. $652,500. $817,500. $592,500. $890,000. When the actual cost of direct materials used exceeds the standard cost, the company must have experienced an unfavorable direct materials price variance. True False A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, and 30% the following month. Projected sales for January, February, and March are $75,000, $92,000 and $60,000. respectively. The March expected cash receipts from all current and prior credit sales are $80,500. True False
Explanation / Answer
1 2.85 Years 2 $61,250 3 0 units of A and 200000 units of Z 4 FALSE 5 280 Units 6 TRUE 7 125000 fixed and 102500 variable 8 $890,000 9 TRUE 10 FALSE
