Reference no: EM132537927
Questions -
Q1. Creditors accounts are settled 35% in the month of purchase and 65% in the month following the purchase. If credit purchases are $20,000 in January and $26,000 in February how much cash is paid to creditors in February?
a. $23,900
b. $20,000
c. $22,100
d. $26,000
e. $46,000
Q2. Network Company Pty Ltd made the following estimates for the three months ending 31 March. This is Network Company's first period of operation and their starting cash balance is $5 000.
Estimates:
Cash receipts from sales $600 000
Cash payments for expenses 260 000
Purchase of motor vehicle ($10 000 will not be paid until April) 40 000
Depreciation of motor vehicle 8000
Repayment of bank loan 50000
What is the estimated cash balance at 31 March?
a. $252 000 surplus
b. $265 000 deficit
c. $252 000 deficit
d. $265 000 surplus
e. $260 000 surplus
Q3. Kent Ltd produces printing machines. The accountant uses a job cost system and has calculated the following budgeted overhead rates: overhead rate based on direct labour hours is $7 per DLH; overhead rate based on machine hours is $26 per MH.
Kent Ltd completed Job CK23 which required $500 of direct materials, 24 direct labour hours at a rate of $8/DLH, and 8 machine hours.
What would be the cost of Job CK23 if Kent Ltd uses MH as cost driver?
a. $668
b. $860
c. $900
d. $708
e. $692
Q4. Kent Ltd produces printing machines. The accountant uses a job cost system and has calculated the following budgeted overhead rates: overhead rate based on direct labour hours is $7 per DLH; overhead rate based on machine hours is $26 per MH
Kent Ltd completed Job CK23 which required $500 of direct materials, 24 direct labour hours at a rate of $8/DLH, and 8 machine hours.
What would be the cost of Job CK23 if Kent Ltd uses DLH as cost driver?
a. $692
b. $708
c. $668
d. $900
e. $860
Q5. If McLeod Ltd's selling price is $50 per unit, fixed costs are $499 800, and the contribution margin ratio is 0.34. The break-even in sales dollars (rounded to the nearest dollar) is:
a. $1 470 000
b. $757 273
c. $499 800
d. $169 932
e. Unable to be determined from the information given