PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC

WGU C213. PRE -ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC (Image) What do total re venues equal at the break -even point? - $4,500 (Image) Which statement is true with respect to the point on this graph when sales are at 150 units per month? - 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 ? - $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? - $269,750 A company is experiencing an increase in their bad debt expense. Which change in credit policy would cause thi s increase? - 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? - 6,000 A company manufactures custom -built wooden bookshelves. Which two costs would the company classify as period costs? Choose 2 answers - 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 $22 5,000 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 p ayments for inventory purchased in the second half of 2014? - $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 rat es: $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? - $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 Interest Payment on Long -Term Debt -25,000 Payment of Wages -315,000 Payment of Rent -40,000