ACCT 526 FINAL EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT RESPONSES
◉ At December 31, 2017, Stand Still Industries had $2,500 of raw
material inventory. At the beginning of 2017, there was $2,000 of
materials on hand. During the year, the company purchased
$305,000 of materials; however, it paid for only $292,500. How
much inventory was used of jobs during 2017?
Answer: $304,500
◉ In the year-end financial statements, the Manufacturing Overhead
account should have:
Answer: a zero balance, since all overhead costs incurred during the
year should be assigned to the production of the year
◉ ABC Company budgeted the following transactions for April:
Sales (75% collected in month of sale) $200,000
Cash operating expense $105,000
Cash purchases of capital investments $75,000
Cash payment of debt $20,000
Depreciation on operating assets $15,000
, There was a $50,000 beginning cash balance. The company desires
to have a $25,000 ended cash balance. What is the amount of cash
overage or shortage?
Answer: $25,000 shortage
◉ The estimated period costs necessary to support a given level of
sales will be shown on the
Answer: selling and administrative budget
◉ The budget for a merchandiser differs from a budget for a
manufacturer because:
a. a merchandise purchases budget replaces the production budget
b. the manufacturing budgets are not applicable
c. none of the above
d. both (a) and (b)
Answer: both (a) and (b)
◉ Which of the following is generally the first step in preparing the
master budget?
Answer: sales budget
QUESTIONS AND CORRECT RESPONSES
◉ At December 31, 2017, Stand Still Industries had $2,500 of raw
material inventory. At the beginning of 2017, there was $2,000 of
materials on hand. During the year, the company purchased
$305,000 of materials; however, it paid for only $292,500. How
much inventory was used of jobs during 2017?
Answer: $304,500
◉ In the year-end financial statements, the Manufacturing Overhead
account should have:
Answer: a zero balance, since all overhead costs incurred during the
year should be assigned to the production of the year
◉ ABC Company budgeted the following transactions for April:
Sales (75% collected in month of sale) $200,000
Cash operating expense $105,000
Cash purchases of capital investments $75,000
Cash payment of debt $20,000
Depreciation on operating assets $15,000
, There was a $50,000 beginning cash balance. The company desires
to have a $25,000 ended cash balance. What is the amount of cash
overage or shortage?
Answer: $25,000 shortage
◉ The estimated period costs necessary to support a given level of
sales will be shown on the
Answer: selling and administrative budget
◉ The budget for a merchandiser differs from a budget for a
manufacturer because:
a. a merchandise purchases budget replaces the production budget
b. the manufacturing budgets are not applicable
c. none of the above
d. both (a) and (b)
Answer: both (a) and (b)
◉ Which of the following is generally the first step in preparing the
master budget?
Answer: sales budget
