Questions -
Q1. A department store has budgeted sales of 11,000 men's suits in March. Management wants to have 7,800 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for $month is expected to be 7,600 suits. What is the dollar amount of purchase of suits? Each suit has a cost of $80.
$880,000
$796,000
$1,488,000
$1,504,000
$896,000
Q2. Kyoto, Inc. predicts the following sales in units for the coming four months:
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April
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May
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June
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July
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Sales in units
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250
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290
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310
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250
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Although each month's ending inventory of finished units should be 50% of the next month's sales, the March 31 finished goods inventory is only 110 units. A finished unit requires four 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 25% of the following month's production needs.
The budgeted purchases of pounds of raw material B during May should be:
280 pounds.
1,212 pounds.
1,170 pounds.
293 pounds.
1,150 pounds.
Q3. The following company information is available for January:
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Direct materials used
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2,300 feet @$50 per foot
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Standard costs for direct materials for January production
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2,400 feet @ $48 per foot
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The direct material price variance is:
$7,600 unfavorable.
$6,350 favorable.
$4,600 unfavorable.
$4,700 favorable.
$4,350 favorable.
Q4. Use the following data to find the direct labor cost variance.
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Direct labor standard (3.5 hrs.@ $7/hr.)
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$24.5 per unit
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Actual hours worked per unit
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3 hours
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Actual units produced
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3,100 units
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Actual rate per hour
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$7.5
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$8,700 unfavorable.
$7,700 favorable.
$6,700 unfavorable.
$5,450 favorable.
$6,200 favorable.