1. Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $.10 per pound, and receiving and handling costs are $.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct labor rate per hour is
2. Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
3. The following credit sales are budgeted by Terra CO:
Jan: 204,000
Feb: 300,000
March: 420,000
April: 360,000
The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month of following sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is:
4. Amber manufacturing provided the following information for last month:
Sales $20,000
Variable Costs $6,000
Fixed Costs $9,000
Operating Income $5,000
If sales double next month, what is the projected operating income?
5. Victoria, Inc. reports:
|
Cash provided by operating activities
|
$2,300,000
|
|
Cash used by investing activities
|
640,000
|
|
Cash used by financing activities
|
220,000
|
|
Beginning cash balance
|
340,000
|
What is Victoria's ending cash balance?
6. Sawyer, Inc. consistently estimated its bad debt expense at 1 percent of credit sales. In 2014, however, Sawyer determines that it must revise upward the estimate of bad debts for the current year's credit sales to 2 percent, or double the prior years' percentage. Sawyer uses the revised estimate of 2% and calculates bad debt expense of $500,000. How is the change in the estimated bad debt expense reported in Sawyer's 2014 financial statements?
7. If a country has 200 million employed adults, 8 million unemployed adults, 30 million adults who are not in the labor force, and 40 million non-adults (under 16) population, then the unemployment rate is:
8. Autonomous consumption is $500, the marginal propensity to consume is 0.8, and planned investment spending is $200. If GDP is $3,000, how much is unplanned inventory investment?