ACC 241 ASU DALLMUS FINAL EXAM
PAPER 2026 COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
⩥ ) Crafty Carpentry Company produces and sells a shelf for $25 each.
The beginning inventory is 2,000 shelves, and the desired ending
inventory is 2,200 shelves. If budgeted production is 12,500 shelves,
what is the forecasted sales revenue from the shelves?
A) $417,500
B) $307,500
C) $317,500
D) $207,500. Answer: B
Production 12,500
+ BI 2,000
Total Produced 14,500
Less: EI 2,200
Unit Sales 12,300 × $25 = $307,500
⩥ Willard's Department Store has budgeted cost of goods sold of
$42,000 for its men's shorts in March. Management also wants to have
$7,600 of men's shorts in inventory at the end of March to prepare for
the summer season. Beginning inventory of men's shorts for March is
,expected to be $5,500. What dollar amount of men's shorts should be
purchased in March?
A) $39,900
B) $44,100
C) $55,100
D) $29,900. Answer: B
Cost of Goods Sold $42,000
+ EI 7,600
= Goods Available 49,600
Less BI 5,500
= Purchases 44,100
⩥ Thomas Corporation recorded sales of $200,000 during March.
Management expects sales to increase 5% in April, another 2% in May,
and another 10% in June. Cost of goods sold is expected to be 80% of
sales. What is the budgeted gross profit for June?
A) $47,124
B) $43,697
C) $235,620
D) $42,840. Answer: A
,$200,000 × 1.05% = 210,000 × 1.02% = 214,200 × 1.10% = $235,620
Now Sales × 80% = Cost of Goods Sold - 188,496 = Gross Profit
$47,124
⩥ Sam's Toys budgeted sales of $300,000 for the month of November
and cost of goods sold equal to 80% of sales. Beginning inventory for
November was $50,000 and ending inventory for November is estimated
at $55,000. How much are the budgeted purchases for November?
A) $245,000
B) $65,000
C) $235,000
D) $135,000. Answer: A
80 % × $300,000 = $240,000 Cost of Goods Sold
Less BI 50,000
= 190,000
+ EI 55,000
=Purchases $245,000
⩥ ) Fosnight Enterprises prepared the following sales budget:
Month Budgeted Sales
March $6,000
, April $13,000
May $12,000
June $14,000
The expected gross profit rate is 30% and the inventory at the end of
February was $10,000. Desired inventory levels at the end of the month
are 20% of the next month's cost of goods sold.
What is the desired beginning inventory on June 1?
A) $840
B) $1,680
C) $1,960
D) $9,800. Answer: C
Sales = 100% - 30% Gross Profit = 70% Cost of Goods Sold (CGS)
Now: June Sales $14,000 × 70% = 9,800 (CGS) × 20% = $1,960
⩥ Warshaw Company budgets payroll at $3,600 per month plus a
percentage of monthly sales. The June operating expenses budget
includes total payroll of $13,200 with budgeted sales of $160,000. Sales
for July are budgeted at $180,000 while purchases of inventory for July
are budgeted at $95,000. Depreciation and insurance for July are
estimated at $1,000 and $600, respectively. Office and administrative
expenses related to purchasing inventory are budgeted at 10% of
PAPER 2026 COMPLETE QUESTIONS AND
VERIFIED SOLUTIONS
⩥ ) Crafty Carpentry Company produces and sells a shelf for $25 each.
The beginning inventory is 2,000 shelves, and the desired ending
inventory is 2,200 shelves. If budgeted production is 12,500 shelves,
what is the forecasted sales revenue from the shelves?
A) $417,500
B) $307,500
C) $317,500
D) $207,500. Answer: B
Production 12,500
+ BI 2,000
Total Produced 14,500
Less: EI 2,200
Unit Sales 12,300 × $25 = $307,500
⩥ Willard's Department Store has budgeted cost of goods sold of
$42,000 for its men's shorts in March. Management also wants to have
$7,600 of men's shorts in inventory at the end of March to prepare for
the summer season. Beginning inventory of men's shorts for March is
,expected to be $5,500. What dollar amount of men's shorts should be
purchased in March?
A) $39,900
B) $44,100
C) $55,100
D) $29,900. Answer: B
Cost of Goods Sold $42,000
+ EI 7,600
= Goods Available 49,600
Less BI 5,500
= Purchases 44,100
⩥ Thomas Corporation recorded sales of $200,000 during March.
Management expects sales to increase 5% in April, another 2% in May,
and another 10% in June. Cost of goods sold is expected to be 80% of
sales. What is the budgeted gross profit for June?
A) $47,124
B) $43,697
C) $235,620
D) $42,840. Answer: A
,$200,000 × 1.05% = 210,000 × 1.02% = 214,200 × 1.10% = $235,620
Now Sales × 80% = Cost of Goods Sold - 188,496 = Gross Profit
$47,124
⩥ Sam's Toys budgeted sales of $300,000 for the month of November
and cost of goods sold equal to 80% of sales. Beginning inventory for
November was $50,000 and ending inventory for November is estimated
at $55,000. How much are the budgeted purchases for November?
A) $245,000
B) $65,000
C) $235,000
D) $135,000. Answer: A
80 % × $300,000 = $240,000 Cost of Goods Sold
Less BI 50,000
= 190,000
+ EI 55,000
=Purchases $245,000
⩥ ) Fosnight Enterprises prepared the following sales budget:
Month Budgeted Sales
March $6,000
, April $13,000
May $12,000
June $14,000
The expected gross profit rate is 30% and the inventory at the end of
February was $10,000. Desired inventory levels at the end of the month
are 20% of the next month's cost of goods sold.
What is the desired beginning inventory on June 1?
A) $840
B) $1,680
C) $1,960
D) $9,800. Answer: C
Sales = 100% - 30% Gross Profit = 70% Cost of Goods Sold (CGS)
Now: June Sales $14,000 × 70% = 9,800 (CGS) × 20% = $1,960
⩥ Warshaw Company budgets payroll at $3,600 per month plus a
percentage of monthly sales. The June operating expenses budget
includes total payroll of $13,200 with budgeted sales of $160,000. Sales
for July are budgeted at $180,000 while purchases of inventory for July
are budgeted at $95,000. Depreciation and insurance for July are
estimated at $1,000 and $600, respectively. Office and administrative
expenses related to purchasing inventory are budgeted at 10% of
