09
Managerial Accounting Chapter 7 PROVEN
SUCCESS BUNDLE: REAL EXAM SAMPLES &
ANSWER KEYS 2027 READINESS KIT: VERIFIED
TEST BANK FOR FINAL EVALUATION
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for
sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in
the month of sale, 30% are collected in the month following sale, and 15% are collected in the
second month following sale. The remainder are uncollectible.
Given these data, cash collections for December should be?
a. $103,875
b. $98,125
c. $136,375
d. $119,500
- best ans-136, 375
All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in
the month of sale, 25% in the month following sale, and 10% in the second month following
sale. The remainder are uncollectible. The following are budgeted sales data for the company:
January February March April
Total sales $400,000 $600,000 $500,000 $700,000
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,09
Cash receipts in April are expected to be?
a. $420,000
b. $545,000
c. $605,000
d. $185,000
- best ans-605,000
Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected
mug sales at Fab (in units) for the next three months are as follows:
October November December
Budgeted unit sales 28,000 25,000 31,000
Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated
sales.
How many mugs should Fab plan on producing during the month of November?
a. 23,200 mugs
b. 26,800 mugs
c. 25,900 mugs
d. 34,300 mugs
- best ans-26,800
90
, 09
On November 1, Barnes Corporation has 8,000 units of Product A on hand. During the month,
the company plans to sell 30,000 units of Product A, and plans to have 6,500 units on hand at
end of the month.
How many units of Product A must be produced during the month?
a. 28,500
b. 31,500
c. 30,000
d. 36,500
- best ans-28,500
Mutskic Corporation produces and sells Product BetaC. To guard against stockouts, the company
requires that 30% of the next month's sales be on hand at the end of each month. Budgeted
sales of Product BetaC over the next four months are:
June July August September
Budgeted sales in units 60,000 70,000 80,000 90,000
Budgeted production for August would be?
a. 83,000 units
b. 107,000 units
c. 77,000 units
d. 80,000 units
90
Managerial Accounting Chapter 7 PROVEN
SUCCESS BUNDLE: REAL EXAM SAMPLES &
ANSWER KEYS 2027 READINESS KIT: VERIFIED
TEST BANK FOR FINAL EVALUATION
Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for
sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in
the month of sale, 30% are collected in the month following sale, and 15% are collected in the
second month following sale. The remainder are uncollectible.
Given these data, cash collections for December should be?
a. $103,875
b. $98,125
c. $136,375
d. $119,500
- best ans-136, 375
All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in
the month of sale, 25% in the month following sale, and 10% in the second month following
sale. The remainder are uncollectible. The following are budgeted sales data for the company:
January February March April
Total sales $400,000 $600,000 $500,000 $700,000
90
,09
Cash receipts in April are expected to be?
a. $420,000
b. $545,000
c. $605,000
d. $185,000
- best ans-605,000
Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected
mug sales at Fab (in units) for the next three months are as follows:
October November December
Budgeted unit sales 28,000 25,000 31,000
Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated
sales.
How many mugs should Fab plan on producing during the month of November?
a. 23,200 mugs
b. 26,800 mugs
c. 25,900 mugs
d. 34,300 mugs
- best ans-26,800
90
, 09
On November 1, Barnes Corporation has 8,000 units of Product A on hand. During the month,
the company plans to sell 30,000 units of Product A, and plans to have 6,500 units on hand at
end of the month.
How many units of Product A must be produced during the month?
a. 28,500
b. 31,500
c. 30,000
d. 36,500
- best ans-28,500
Mutskic Corporation produces and sells Product BetaC. To guard against stockouts, the company
requires that 30% of the next month's sales be on hand at the end of each month. Budgeted
sales of Product BetaC over the next four months are:
June July August September
Budgeted sales in units 60,000 70,000 80,000 90,000
Budgeted production for August would be?
a. 83,000 units
b. 107,000 units
c. 77,000 units
d. 80,000 units
90
