Pick the Correct answer, please show work 6. Birrell Company manufactures potter
ID: 2388562 • Letter: P
Question
Pick the Correct answer, please show work
6. Birrell Company manufactures pottery. Production of large garden pots for the coming three months is budgeted as follows:
May 20,000
June 40,000
July 35,000
Each pot requires 30 minutes of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $4 per direct labor hour plus fixed overhead of $2,100.
What is the direct labor cost budgeted for June?
a. $20,000
b. $300,000
c. $40,000
d. $150,000
e. $525,000
7. What is the total overhead budgeted for the month of June?
a. $80,000
b. $82,100
c. $42,100
d. $160,000
e. $162,100
8. Galvern Company provided the following data for July:
Direct materials $50,000
Direct labor $25,000
Overhead $90,000
Beginning finished goods $15,000
Ending finished goods $34,000
Production in units 10,000
What is the cost of goods sold?
a. $165,000
b. $146,000
c. $214,000
d. $184,000
e. $75,000
9. Sorrell Company makes all its sales on account. Accounts receivable payment experience is as follows:
Percent paid in the month of sale 30%
Percent paid in the month after the sale 60%
Percent paid in the second month after the sale 8%
Sorrell provided information on sales as follows:
May $100,000
June $120,000
July $130,000
August (expected) $150,000
How much of May’s sales are expected to be uncollectible?
a. $8,000
b. $2,000
c. $2,500
d. $7,200
e. $0
10. How much of June credit sales are expected to be collected in the month of July for Sorrell?
a. $30,000
b. $60,000
c. $36,000
d. $72,000
e. $80,000
11. What is budgeted cash to be collected on account for the month of August for Sorrell?
a. $45,000
b. $132,000
c. $132,600
d. $150,000
e. $ 54,600
Explanation / Answer
Pick the Correct answer, please show work 6. B. $300,000 40,000 pots x (1/2 pots per hour) x $15 = $300,000 7. B. $82,100 40,000 pots x (1/2 pots per hour) x $4 = $80000 + $2100 = $82100 8. B. $146,000 50,000 + $25,000 + $90,000 + $15,000 - $34,000 = $146,000 9. B. $2,000 2% x $100,000 = $2,000 10. D. $72,000 60% x $120,000 = $72,000 11. C. $132,600 8% x $120,000 = $9,600 60% x $130,000 = $78,000 30% x 150,000 = $45,000 = $132,600