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Accounting Shortlist Exam

u-republic 17 questions Updated 27 Dec 2016

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Questions in this quiz (17)

  1. 1Barnes Corporation expected to sell 150,000 board games during the month of November, and the company’s master budget contained the following data related to the sale and production of these games:

    Revenue $ 2,400,000
    Cost of goods sold
    Direct materials 675,000
    Direct labor 300,000
    Variable overhead 450,000
    Contribution $ 975,000
    Fixed overhead 250,000
    Fixed selling and administration 500,000
    Operating income $ 225,000

    Actual sales during November were 180,000 games. Using a flexible budget, the company expects the operating income for the month of November to be
    1. A$420,000
    2. B$270,000
    3. C$510,000
    4. D$225,000
  2. 2The master budget process usually begins with the
    1. ASales Budget
    2. BOperating Budget
    3. CFinancial Budget
    4. DProduction Budget
  3. 3For the month of June, Wilder Cherry Company expects to sell 12,500 cases of small cherries at $25 per case and 33,000 cases of large cherries at $32 per case. Sales personnel receive a 6% commission on each case of small cherries and an 8% commission on each case of large cherries. To receive a commission on a product, the sales personnel team must meet the individual product revenue quota. The sales quotas for small cherries and large cherries are $500,000 and $1 million respectively. What are the sales commissions budgeted for June?
    1. A$4,480
    2. B$109,440
    3. C$82,110
    4. D$84,480
  4. 4Which changes in costs are most conducive to switching from a traditional inventory system to a just-in-time ordering system
    1. ACost per Purchase Order Increasing; Inventory Unit Carrying System Increasing
    2. BCost per Purchase Order Decreasing; Inventory Unit Carrying System Decreasing
    3. CCost per Purchase Order Increasing; Inventory Unit Carrying System Decreasing
    4. DCost per Purchase Order Decreasing; Inventory Unit Carrying System Increasing
  5. 5Tocon Company Produces Two Components: A-1 and A-2. The unit throughput contribution margins for A-1 and A-2 are $250 and $300, respectively. Each component must proceed through two processes. Operation 1 and operation 2. The capacity of operation 1 is 180 machine hours, with A-1 and A-2 requiring 1 hour and 3 hours respectively. Furthermore, Tocon can sell only 45 units of A-1 and 100 units of A-2. However, Tocon is considering expanding operation 1’s capacity by 90 machine hours at a cost of $80 per hour. Assuming that operation 2 has sufficient capacity to handle any additional output from operation 1, Tocon should produce
    1. A45 Units of A-1; 75 Units of A-2
    2. B180 Units of A-1; 0 Units of A-2
    3. C0 Units of A-1; 60 Units of A-2
    4. D45 Units of A-1; 100 Units of A-2
  6. 6Mountain Corporation manufacturers cabinets but outsources the handles. Eight handles are needed for a cabinet, with assembly requiring 30 minutes of direct labor per unit. Ending finished goods inventory is planned to consist of 50% of projected unit sales for the next month, and ending handles inventory is planned to be 80% of the requirement for the next month’s projected unit output of finished goods.

    Mountain’s projected unit sales:
    October 4,600
    November 5,000
    December 4,200
    January 6,000

    Mountain’s ending inventories in units at September 30:
    Finished goods 3,800
    Handles 16,000

    The number of units that Mountain finished during December is:
    1. A3,000
    2. B5,100
    3. C4,200
    4. D5,000
  7. 7Baxter Corporation’s master budget calls for the production of 5,000 units of product monthly. The master budget includes indirect labor of $144,000 annually; Baxter considers indirect labor to be a variable cost. During the month of April, 4,500 units of product were produces, and indirect labor costs of $10,100 were incurred. A performance report utilizing flexible budgeting would report a budget variance for indirect labor of
    1. A$1,900 favorable
    2. B$700 favorable
    3. C$700 unfavorable
    4. D$1,900 unfavorable
  8. 8When budgeting, the items to be considered by a manufacturing firm in going from a sales quantity budget to a production budget would be the
    1. AExpected change in the quantity of work-in-process inventories
    2. BExpected change in the quantity of finished goods and raw material inventories
    3. CExpected change in the quantity of finished goods and work-in-process inventories
    4. Dd) Expected change in the availability of raw material without regard to inventory levels
  9. 9The Alsner Company budgeted sales of $220,000 for June, $200,000 for July, $280,000 for August, $264,000 for September, $244,000 for October, and $300,000 for November. Approximately 75% of sales are on credit; the remainder are cash sales. Collection experience indicates that 60% of the budgeted credit sales will be collected the month after the sale, 36% the second month, and 4% will be collectible. Which month has the highest budgeted cash receipts?
    1. ASeptember
    2. BAugust
    3. COctober
    4. DNovember
  10. 10Which of the following is normally included in the financial budget of a firm
    1. ASelling expense budget
    2. BBudgeted balance sheet
    3. CDirect materials budget
    4. DSales budget

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Description
Dear candidates, this test has a time limit of 1 hour. Good luck.
Language
English
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546
History
Created on 2 Sep 2015 · updated on 27 Dec 2016
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