Scribd Logo
Upload

Welcome to Scribd!

  • 13 views

    COSTRAM Mod 3 PDF

    Uploaded by

    Charles Navarro
    The document provides examples of production and inventory related questions with correct answers. It tests understanding of concepts like calculating required production, sales, purchases, inventory levels, cash flows and costs based on given budgets and assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    COSTRAM Mod 3 PDF

    Uploaded by

    Charles Navarro
    13 views3 pages
    The document provides examples of production and inventory related questions with correct answers. It tests understanding of concepts like calculating required production, sales, purchases, inventory levels, cash flows and costs based on given budgets and assumptions.

    Original Description:

    quiz

    Original Title

    COSTRAM_mod_3.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides examples of production and inventory related questions with correct answers. It tests understanding of concepts like calculating required production, sales, purchases, inventory levels, cash flows and costs based on given budgets and assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views3 pages

    COSTRAM Mod 3 PDF

    Uploaded by

    Charles Navarro
    The document provides examples of production and inventory related questions with correct answers. It tests understanding of concepts like calculating required production, sales, purchases, inventory levels, cash flows and costs based on given budgets and assumptions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    COSTRAM mod 3 reviewer

    • Clover Company desires an ending inventory of P140,000. It expects sales of P800,000 and has a
    beginning inventory of P130,000. Cost of sales is 65% of sales. Budgeted purchases are:

    Correct answer: P530,000

    • Newman Products is preparing their first quarter production budget. The desired ending inventory
    of finished goods for the month of January becomes:

    Correct answer: the beginning inventory for the month of February.

    • Broughton Corp. has prepared a production budget for February. Management has determined that
    the total required production for February is 360,000 units when an ending inventory of 40,000
    units is desired and the beginning inventory is 10,000 units. What were February's budgeted sales?

    Correct answer: 330,000 units

    • Lopez Company has a collection schedule of 60% during the month of sales, 15% the following
    month, and 15% subsequently. The total credit sales in the current month of September were
    P80,000 and total collection in September were P57,000. What were the credit sales in July?

    Correct Answer: P30,000

    • Silvestre Company estimated in overhead to produce 80,000 units at P1,000,000 (60% is variable). If
    the estimate changes, and Silvestre now expects to produce 100,000 units, what would the
    budgeted overhead be if the cost behavior remains the same?

    Correct answer: P1,150,000

    • Porcelain Interiors sells a variety of porcelain products including porcelain sinks. At December 31,
    the company had 200 sinks in inventory. The company's policy is to maintain a sink inventory equal
    to 5% of next month's sales. The company expects the following sales activity for the first quarter of
    the year:

    Correct answer: 2,015

    This study source was downloaded by 100000869900908 from CourseHero.com on 08-22-2023 08:24:16 GMT -05:00

    https://www.coursehero.com/file/181983920/COSTRAM-mod-3pdf/
    • Guitar Company manufactures a single product. It keeps its inventory of finished goods at twice the
    coming month's budgeted sales and inventory of raw materials at 150% of the coming month's
    budgeted production requirements. Each unit of product requires two pounds of materials. The
    production budgets in units consist of the following:
    May 1,000
    June 1,200
    July 1,300
    August 1,600
    Raw materials purchases in June would be

    Correct Answer: 2,700 pounds

    • Alona Company expects its June sales to be P300,000, which is 25% higher than its May sales.
    Purchases were P200,000 in May and are expected to be P240,000 in June. All sales are on credit
    and are collected as follows: 80% in the month of sale and 20% in the following month. All
    payments in the month of sales are given 2% discount. Sixty percent of purchases are paid in the
    month of purchase to take advantage of purchase term of 1/10, n/40. The remaining amount is paid
    in the following month. The beginning cash balance on June 1 is P20,000. The ending cash balance
    on June 30 would be:

    Correct answer: P80,640

    • Michael Page Manufacturing Company sells birdhouses. The company has prepared the following
    forecast for the third quarter of 2019:

    July 5,000 units


    August 6,000 units
    September 10,000 units

    Inventory of finished goods in June 30, 2019, is budgeted at 1,000 units. Management would like the
    desired quantity of finished goods inventory at the end of each month to equal 20% of next month's
    budgeted sales. October's projected sales are 12,000 units.

    Each completed unit of finished goods requires 3 square feet of cedar at a cost of P15 per square foot.
    The company has determined that it needs 10% of next month's raw material needs on hand at the end
    of each month. The cost of the direct material that should be purchased in August is:

    Correct Answer: P322,200

    This study source was downloaded by 100000869900908 from CourseHero.com on 08-22-2023 08:24:16 GMT -05:00

    https://www.coursehero.com/file/181983920/COSTRAM-mod-3pdf/
    • Texas Company plans to sell 400,000 units of finished product in July and anticipates a growth rate
    in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80%
    of the next month's estimated sales. There are 300,000 finished units in the inventory on June 30.
    Each unit of finished product requires four pounds of direct materials at a cost of P2.50 per pound.
    There are 800,000 pounds of direct materials in the inventory on June 30. How many units should
    be produced for the three-month period ending September 30?

    Correct answer: 1,331,440

    This study source was downloaded by 100000869900908 from CourseHero.com on 08-22-2023 08:24:16 GMT -05:00

    https://www.coursehero.com/file/181983920/COSTRAM-mod-3pdf/
    Powered by TCPDF (www.tcpdf.org)

    You might also like