Accounting Derivatives

2055 words 9 pages
This set of 28 questions, taken from prior examinations, covers topics in Chapters 6, 7, and 9.

The purpose of sample multiple choice questions is to acquaint you with the style and substance of typical exam questions on this material.

Please be aware that:

1. multiple choice format questions are only one of many resources available to prepare for testing events – reading textbook chapters and working through chapter examples, studying the end-of-chapter review problem and accompanying solution, and reviewing assigned homework items and the published solutions may be more powerful methods to increase your understanding of the topics covered in the course.

2. the exam questions used this quarter will be similar but
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C) The sales budget is constructed by multiplying the expected sales in units by the sales price. D) The sales budget is often the starting point in preparing the master budget.

Use the following to answer questions 20-22:

The Yost Company makes and sells a single product, Product A. Each unit of Product A requires 1.2 hours of labor at a labor rate of 8.40 per hour. Yost Company needs to prepare a Direct Labor Budget for the second quarter.

20. The budgeted direct labor cost per unit of Product A would be:

A) $7.00. B) $9.60. C) $10.08. D) $8.40.

21. If the budgeted direct labor cost for May is $161,280, then the budgeted production of Product A for May would be:

A) 19,200 units. B) 23,040 units. C) 16,800 units. D) 16,000 units.

22. The company has budgeted to produce 20,000 units of Product A in June. The finished goods inventories on June 1 and June 30 were budgeted at 400 and 600 units, respectively. Budgeted direct labor costs incurred in June would be:

A) $201,600. B) $207,648. C) $199,584. D) $168,000.

23. Budgeted production needs are determined by:

A) adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. B) adding budgeted sales in units to the desired ending inventory in units. C) deducting

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