Sophia Unit 4 Managerial Accounting Practice Milestone
Verified Questions And Answers 100% Correct Answers
Practice Milestone
Managerial Accounting — Practice Milestone 4
Taking this practice test is a stress-free way to find out if you are ready for the Milestone 4 assessment. You can print it
out and test yourself to discover your strengths and weaknesses. The answer key is at the end of this Practice
Milestone.
1.
Budgets designed to judge the performance of an individual segment or manager are called ________________.
a.) Master Budgets
b.) Control Budgets
c.) Responsibility Budgets
d.) Participatory Budgets
2.
Wilmington Ice Corporation is in its budgeting process for next year. They anticipate product sales to be the following
for each quarter of next year: Q1 Sales = 2,000 units, Q2 Sales = 5,000 units, Q3 Sales = 10,000 units, and Q4 Sales =
3,000 units.
If Wilmington Ice charges $3 per unit, what is Wilmington Ice’s Total Sales Dollars for the year? a.)
60,000
b.) 15,000
c.) 39,000
d.) 20,000
3.
Page 1
,The Charleston Company, who makes wooden dog houses, is creating their Direct Materials Budget for the upcoming
year. They estimated the following: Units of Production Needed for next year is 10,000 units; the Desired Ending
Direct Material Inventory is 5,000 board feet of wood, the Estimated Beginning Direct Material Inventory is 3,000
board feet of wood, the total board feed of wood it takes to build a dog house is 50 board feet, and the cost of wood
per board foot is $0.50.
What is the Total Cost of Raw Material to be Purchased for the year?
a.) 502,000
b.) 50,000
c.) 300,000
d.) 251,000
4.
The Windy City Window Company is working on creating its Finished Goods Inventory Budget. They anticipate the
following: Manufacturing Overhead and Direct Labor are allocated per hour and Direct Materials are allocated per
pound.
If it takes 0.6 hours, and 20 pounds of Direct Materials to make a window, how much is their Cost of Goods Sold if
Direct Labor costs $17 per hour, Manufacturing Overhead is allocated at $20 per hour, Direct Materials cost $3.00
per pound and they anticipate on selling 5000 units.
a.) 411,000
b.) 598,000
c.) 157,000
d.) 822,200
5.
Ezra has a small shop where he sells custom t-shirts on Etsy. He is working on creating a Cash Collections Budget, so he
can determine his income for the second quarter of next year. He has an accounts receivable balance of $25,000 at
the end of this year and expects his 1st quarter sales for next year to be $75,000 and his 2nd quarter sales to be
$60,000.
If his standard is to collect 80% of sales in the quarter in which it was earned and 20% in the quarter after the sale,
how much will his Total Cash Collections be for Quarter 2 of next year?
Page 2
, a.) $48,000
b.) $75,000
c.) $85,000
d.) $63,000
6.
Naples Inc. is assembling information to determine its Cash Collection Budget for next year. Naples has the following
information it obtained for Quarter 1: a Beginning Cash Balance of $320,000, Collections from Customers of $125,000,
Manufacturing Overhead cash disbursements of $35,000, Direct Labor Dollars of $56,000, and Direct Materials cash
disbursements of $27,000.
What is Naples’ Ending Cash Balance for Quarter 1 of next year?
a.) $445,000
b.) $118,000
c.) $327,000
d.) $125,000
7.
Paducah Pierogi Company is preparing its Budgeted Income Statement for next year. Paducah Pierogi has collected the
following information pertaining to this statement: Sales for next year total $700,000, Selling and Administrative
Expenses for the year are $82,000, and Cost of Goods Sold for next year are $200,000.
What is Paducah Pierogi’s Net Income or Net Loss?
a.) Net Income of $418,000
b.) Net Loss of $502,000
c.) Net Loss of $248,000
d.) Net Income of $728,000
Page 3
Verified Questions And Answers 100% Correct Answers
Practice Milestone
Managerial Accounting — Practice Milestone 4
Taking this practice test is a stress-free way to find out if you are ready for the Milestone 4 assessment. You can print it
out and test yourself to discover your strengths and weaknesses. The answer key is at the end of this Practice
Milestone.
1.
Budgets designed to judge the performance of an individual segment or manager are called ________________.
a.) Master Budgets
b.) Control Budgets
c.) Responsibility Budgets
d.) Participatory Budgets
2.
Wilmington Ice Corporation is in its budgeting process for next year. They anticipate product sales to be the following
for each quarter of next year: Q1 Sales = 2,000 units, Q2 Sales = 5,000 units, Q3 Sales = 10,000 units, and Q4 Sales =
3,000 units.
If Wilmington Ice charges $3 per unit, what is Wilmington Ice’s Total Sales Dollars for the year? a.)
60,000
b.) 15,000
c.) 39,000
d.) 20,000
3.
Page 1
,The Charleston Company, who makes wooden dog houses, is creating their Direct Materials Budget for the upcoming
year. They estimated the following: Units of Production Needed for next year is 10,000 units; the Desired Ending
Direct Material Inventory is 5,000 board feet of wood, the Estimated Beginning Direct Material Inventory is 3,000
board feet of wood, the total board feed of wood it takes to build a dog house is 50 board feet, and the cost of wood
per board foot is $0.50.
What is the Total Cost of Raw Material to be Purchased for the year?
a.) 502,000
b.) 50,000
c.) 300,000
d.) 251,000
4.
The Windy City Window Company is working on creating its Finished Goods Inventory Budget. They anticipate the
following: Manufacturing Overhead and Direct Labor are allocated per hour and Direct Materials are allocated per
pound.
If it takes 0.6 hours, and 20 pounds of Direct Materials to make a window, how much is their Cost of Goods Sold if
Direct Labor costs $17 per hour, Manufacturing Overhead is allocated at $20 per hour, Direct Materials cost $3.00
per pound and they anticipate on selling 5000 units.
a.) 411,000
b.) 598,000
c.) 157,000
d.) 822,200
5.
Ezra has a small shop where he sells custom t-shirts on Etsy. He is working on creating a Cash Collections Budget, so he
can determine his income for the second quarter of next year. He has an accounts receivable balance of $25,000 at
the end of this year and expects his 1st quarter sales for next year to be $75,000 and his 2nd quarter sales to be
$60,000.
If his standard is to collect 80% of sales in the quarter in which it was earned and 20% in the quarter after the sale,
how much will his Total Cash Collections be for Quarter 2 of next year?
Page 2
, a.) $48,000
b.) $75,000
c.) $85,000
d.) $63,000
6.
Naples Inc. is assembling information to determine its Cash Collection Budget for next year. Naples has the following
information it obtained for Quarter 1: a Beginning Cash Balance of $320,000, Collections from Customers of $125,000,
Manufacturing Overhead cash disbursements of $35,000, Direct Labor Dollars of $56,000, and Direct Materials cash
disbursements of $27,000.
What is Naples’ Ending Cash Balance for Quarter 1 of next year?
a.) $445,000
b.) $118,000
c.) $327,000
d.) $125,000
7.
Paducah Pierogi Company is preparing its Budgeted Income Statement for next year. Paducah Pierogi has collected the
following information pertaining to this statement: Sales for next year total $700,000, Selling and Administrative
Expenses for the year are $82,000, and Cost of Goods Sold for next year are $200,000.
What is Paducah Pierogi’s Net Income or Net Loss?
a.) Net Income of $418,000
b.) Net Loss of $502,000
c.) Net Loss of $248,000
d.) Net Income of $728,000
Page 3
