WGU C213 Pre Assessment 2025
(Image)
What do total revenues equal at the break-even point? - ANS - $4,500
\(Image)
Which statement is true with respect to the point on this graph when sales are at
150 units per month? - ANS - Total costs equal $3,500.
\A company budgeted the following purchases for raw materials:
Month January February March April May June July
Budget $10,000 $20,000 $25,000 $22,000 $27,000 $30,000 $24,000
The company has a policy of paying for 40% of the purchases in the month of
purchase, 35% in the month following the purchase, and 25% in the second
month following the purchase.
Based on this information, what are the budgeted cash disbursements for May? -
ANS - $24,750
\A company has projected the following sales for the spring quarter of 2014:
April $200,000
May $250,000
June $275,000
65% of all sales are paid for with cash. The remainder is on credit.
The pattern for credit receivables collections are:
Month of Sale 60%
Month After Sale 30%
Second Month After Sale 10%
What are the forecasted cash collections for the month of June? - ANS - $269,750
\A company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase? - ANS - Credit limits
were increased for all customers.
\A company manufactures and sells widgets. The following information is
available:
• Each widget sells for $100.
• The variable cost per widget is $50.
• Total fixed costs per month are $300,000.
, How many widgets does the company need to sell each month to break even? -
ANS - 6,000
\A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Choose 2 answers - ANS - Salary cost of the receptionist. Advertising cost.
\A company plans to purchase inventory for the second half of 2014 as follows:
July $100,000
August $75,000
September $225,000
October $125,000
November $250,000
December $30,000
They usually pay 50% of inventory purchases in the month of purchase, 35% in
the following month, and 15% in the second month.
Based on this information, what are the forecasted total 2014 cash payments for
inventory purchased in the second half of 2014? - ANS - $752,500
\A company reported the following information for the production and sale of
500,000 gallons of oil:
(Image)
Overhead was applied based upon the following predetermined overhead rates:
$0.75 per gallon
$500 per batch
$1,000 per ingredient
What would be the gross profit if the company increased their selling price per
gallon by $0.10? - ANS - $20,000
\A company's statement of cash flows includes the following cash transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
(Image)
What do total revenues equal at the break-even point? - ANS - $4,500
\(Image)
Which statement is true with respect to the point on this graph when sales are at
150 units per month? - ANS - Total costs equal $3,500.
\A company budgeted the following purchases for raw materials:
Month January February March April May June July
Budget $10,000 $20,000 $25,000 $22,000 $27,000 $30,000 $24,000
The company has a policy of paying for 40% of the purchases in the month of
purchase, 35% in the month following the purchase, and 25% in the second
month following the purchase.
Based on this information, what are the budgeted cash disbursements for May? -
ANS - $24,750
\A company has projected the following sales for the spring quarter of 2014:
April $200,000
May $250,000
June $275,000
65% of all sales are paid for with cash. The remainder is on credit.
The pattern for credit receivables collections are:
Month of Sale 60%
Month After Sale 30%
Second Month After Sale 10%
What are the forecasted cash collections for the month of June? - ANS - $269,750
\A company is experiencing an increase in their bad debt expense.
Which change in credit policy would cause this increase? - ANS - Credit limits
were increased for all customers.
\A company manufactures and sells widgets. The following information is
available:
• Each widget sells for $100.
• The variable cost per widget is $50.
• Total fixed costs per month are $300,000.
, How many widgets does the company need to sell each month to break even? -
ANS - 6,000
\A company manufactures custom-built wooden bookshelves.
Which two costs would the company classify as period costs?
Choose 2 answers - ANS - Salary cost of the receptionist. Advertising cost.
\A company plans to purchase inventory for the second half of 2014 as follows:
July $100,000
August $75,000
September $225,000
October $125,000
November $250,000
December $30,000
They usually pay 50% of inventory purchases in the month of purchase, 35% in
the following month, and 15% in the second month.
Based on this information, what are the forecasted total 2014 cash payments for
inventory purchased in the second half of 2014? - ANS - $752,500
\A company reported the following information for the production and sale of
500,000 gallons of oil:
(Image)
Overhead was applied based upon the following predetermined overhead rates:
$0.75 per gallon
$500 per batch
$1,000 per ingredient
What would be the gross profit if the company increased their selling price per
gallon by $0.10? - ANS - $20,000
\A company's statement of cash flows includes the following cash transactions:
Sales 1,250,000
Inventory Purchase -750,000
Property and Equipment Purchase -270,000
