inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 20x4 budgeted income statement? a. $174,000 b. $180,000 c. $186,000 d. $204,000 b Answer: 30,000 x $6 = $180,000 89. DeArmond Corporation has budgeted sales of 18,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 900 units. How many units should be produced next year? a. 21,900 units b. 20,100 c. 15,900 units d. 18,000 units b Answer: 18,000 + 3,000 - 900 = 20,100 units 90. For next year, Galliart, Inc., has budgeted of 60,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 1,800 units. All other inventories are zero. How many units should be produced next year? a. 58,800 units b. 60,000 units c. 61,200 units d. 64,800 c Answer: 60,000 + 3,000 - 1,800 = 61,200 units 91. Wilgers Company has budgeted sales volume of 30,000 units and budgeted production of 27,000 units. 5,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory? a. 5,000 units b. 8,000 units c. 3,000 units d. 2,000 units d Answer: 5,000 + 27,000 - 30,000 = 2,000 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 92 THROUGH 95. Marguerite, Inc., expects to manufacture and sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 20x4: Beginning inventory Ending inventory Direct materials 24,000 units 24,000 units
inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 20x4 budgeted income statement? a. $174,000 b. $180,000 c. $186,000 d. $204,000 Answer: b 30,000 x $6 = $180,000 89. DeArmond Corporation has budgeted sales of 18,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 900 units. How many units should be produced next year? a. 21,900 units b. 20,100 c. 15,900 units d. 18,000 units Answer: b 18,000 + 3,000 - 900 = 20,100 units 90. For next year, Galliart, Inc., has budgeted of 60,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 1,800 units. All other inventories are zero. How many units should be produced next year? a. 58,800 units b. 60,000 units c. 61,200 units d. 64,800 Answer: c 60,000 + 3,000 - 1,800 = 61,200 units 91. Wilgers Company has budgeted sales volume of 30,000 units and budgeted production of 27,000 units. 5,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory? a. 5,000 units b. 8,000 units c. 3,000 units d. 2,000 units Answer: d 5,000 + 27,000 - 30,000 = 2,000 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 92 THROUGH 95. Marguerite, Inc., expects to manufacture and sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 20x4: Beginning inventory Ending inventory Direct materials 24,000 units 24,000 units
Ch06%20Master%20Budget%20and%20Responsibility%20Accounting%20Test.docx