A manufacturing company always carries finished goods inventory equal to 20% of the nextmonth’s budgeted sales. Sales for the current month are 2,000 units and are budgeted to be20% higher next month.How many units will be produced in the current month?

1 .Which of the following are correct?(1) The carrying value of inventory should be as close as possible to net realisablevalue.(2) The valuation of finished goods inventory must include production overheads.(3) Production overheads included in valuing inventory should be calculated byreference to the company’s normal level of production during the period.(4) In assessing net realisable value, inventory items must be considered separately, orin groups of similar items, not by taking the inventory value as a whole.

A (1) and (2) only B (1) and (3) only C (2), (3) and (4) D (3) and (4) only

题型: 单选题 提问时间: 2021-08-23

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2 .

A $51,000 B $57,600 C $72,000 D $75,000

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3 .Bratz manufactures bed linen. From January the company plans to produce a new design offitted sheet which requires 8 metres of fabric per sheet. Bratz plans to produce 500 sheets inJanuary, 700 sheets in February, and 1,700 sheets in March. The company’s policy for rawmaterials is to hold sufficient inventory to meet 40% of the following month’s budgetedproduction requirements. The fabric costs $3 per metre. At the beginning of January, only500 metres of fabric were held.How many metres of fabric should Bratz budget to purchase in February?

A 2,200 metres B 5,440 metres C 8,800 metres D 11,040 metres

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4 .

A 3,200 B 6,400 C 7,200 D 8,000

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5 .Bling has estimated the following for the next budget period: $000Sales 5,000Fixed manufacturing costs 2,000Bling’s variable manufacturing costs are budgeted to be 40% of sales revenue. Inventorylevels are expected to remain constant.What is the budgeted cost of goods sold?

A $2,000,000 B $3,000,000 C $4,000,000 D $5,000,000

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7 .What would be the usual order of budget preparation for a manufacturing company,whose principal budget factor is sales demand?

A Production budget, sales budget, purchases budget. B Production budget, purchases budget, sales budget. C Sales budget, production budget, purchases budget. D Sales budget, purchases budget, production budget.

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8 .A retailer forecasts the following data for the coming period:Sales $500,000Opening inventory $40,000Closing inventory $50,000Mark-up 25%What amount should be budgeted for purchases?

A $365,000 B $385,000 C $390,000 D $410,000

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9 .A retailer forecasts that its sales in the first month of 2014 will be $600,000 and will thengrow at 4% per month for the next three months. It prices its products by adding a mark-upof 20% to its purchase cost. The retailer always carries sufficient inventory to cover the nextmonth’s forecast sales.What is the forecast inventory (to the nearest dollar) at the end of the second month of2014?

A $540,800 B $562,432 C $648,960 D $811,200

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10 .A company manufactures two products, X and Y, from the same direct material. An equalnumber of each product will be produced this period. Each unit of X requires 2 kgs ofmaterial and each unit of Y requires 3 kgs of material. The company always holds closinginventory of raw material sufficient for 40% of the next period’s production. The budgetedclosing raw material inventory for the last period is 900 kgs.What is the budgeted production of X for period three?

A 225 units B 450 units C 900 units D 1,125 units

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