Module 22 - Multiple Choice in Class - Module 22 – Multiple Choice in Class Jewelry Company has a

Module 22 – Multiple Choice in Class

Jewelry Company has a sales budget for next month of $200,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired. Beginning accounts payable is $206,500. The cost of goods sold for next month is expected to be: A) $ 80, B) $ 50, C) $160, D) $ 75,

The Year 1 selling expense budget for Kamal Corporation is as follows: Budgeted sales $1,250, Selling costs: Delivery expenses $25, Commission expenses 30, Advertising expenses 10, Office expenses 6, Miscellaneous expenses 15, Total $ 121, Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising and office expenses are fixed. Miscellaneous expenses include $5,000 of fixed costs. The rest varies with budgeted sales in dollars. The Year 2 budgeted sales is $5,000,000. What will be the value for commission expenses in the Year 2 selling expense budget? A) $102, B) $ 24, C) $120, D) $122,

The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods sold is expected to be $125,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning accounts payable is $26,000. How much merchandise inventory will The Michael Miller Corporation need to purchase next month? A) $123, B) $190, C) $246, D) $400,

Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Gross sales for the quarter are projected as follows: January $20, February $10, March $40, Accounts receivable on December 31 were $30,000. Joy's expected cash collections for March would be: A) $37, B) $32, C) $47, D) $30,

Which of the following budgets for a manufacturing firm indicates the raw materials that must be acquired to meet production needs and ending inventory requirements? A) The sales budget B) The production budget C) The purchases budget D) The manufacturing disbursements budget

Tod Table Company manufactures tables. The estimated number of table sales for each of the last three months of Year 1 is as follows: Month Unit Sales October 10, November 14, December 7, Finished goods inventory at the end of November was 2,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Tod Table expects to sell the tables for $100 each. January sales for Year 2 are projected at 16,000 tables. How many tables should Tod produce in December? A) 15, B) 14, C) 9, D) 7,

Module 22 – Multiple Choice in Class

1. Jewelry Company has a sales budget for next month of $200,000. Cost of goods sold is expected to

be 25 percent of sales. All goods are paid for in the month following purchase. The beginning

inventory of merchandise is $20,000, and an ending inventory of $24,000 is desired. Beginning

accounts payable is $206,500.

The cost of goods sold for next month is expected to be:

A) $ 80,000

B) $ 50,000

C) $160,000

D) $ 75,000

2. The Year 1 selling expense budget for Kamal Corporation is as follows:

Budgeted sales $1,250,000

Selling costs:

Delivery expenses $25,000

Commission expenses 30,000

Advertising expenses 10,000

Office expenses 6,000

Miscellaneous expenses 15,000

Total $ 121,000

Delivery and commission expenses vary proportionally with budgeted sales in dollars. Advertising

and office expenses are fixed. Miscellaneous expenses include $5,000 of fixed costs. The rest

varies with budgeted sales in dollars. The Year 2 budgeted sales is $5,000,000.

What will be the value for commission expenses in the Year 2 selling expense budget?

A) $102,000

B) $ 24,000

C) $120,000

D) $122,000

3. The Michael Miller Corporation has a sales budget for next month of $200,000. Cost of goods

sold is expected to be $125,000. All goods are paid for in the month following their purchase. The

beginning inventory of merchandise is $8,000, and an ending inventory of $6,000 is desired. Beginning

accounts payable is $26,000.

How much merchandise inventory will The Michael Miller Corporation need to purchase next month?

A) $123,000

B) $190,000

C) $246,000

D) $400,000

Module 22 - Multiple Choice in Class

Operations management (MBA 706)

Lagos State University

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