Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows: January 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The
planned selling price is $150 per unit. How many futons are budgeted to be produced in February?
a. 37,500
b. 65,000
c. 52,500
d. 55,000
C
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If raw materials inventory purchases are equal to 60% of the following month’s sales, 50% of purchases are paid for in the month following the purchase, and the remainder is paid in the following month, what formula would you need to enter in D12 to find the payments in November?
a) =$B11*D$9
b) =$B12*E$9
c) =$B9*C$9
d) =$B12*C$9
e) =$B9*C$2
Answer the following statements true (T) or false (F)
1. Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to Work-in-Process Inventory is less than the amount actually incurred. 2. Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account. 3. If the debit side of the Manufacturing Overhead account totals more than the credit side of the account, the manufacturing overhead is overallocated. 4. Job order costing is well suited for the service industry. 5. When job order costing is used in the service industry, the allocation of indirect costs is normally based on machine hours.
Which of the following pricing objectives is best suited for use during the introductory stage of
the life cycle of first-generation high-end technology products? A) survival pricing objective B) market share maximization pricing objective C) market skimming pricing objective D) product-quality leadership pricing objective
Ownership interests in manager-operated LLCs are considered to be securities
Indicate whether the statement is true or false