quiz-ma6-2en

Management Accounting, Chapter 6, Set 2

12 multiple-choice questions. Recommended time: 15-20 minutes.

The following data for items 1-12

Budget information for fiscal year 2026.

Month	Apr.	May	Jun.	Jul.
Sales (units)	8,000	12,000	20,000	10,000

The selling price is 5 baht per unit. The goods are sold on credit, with payment collected as follows: 60% of the sales amount collected in the month of sale, and the remaining 40% collected in the following month.

The inventory of finished goods at the end of each month must equal to 30% of the total sales for the following month. Finished goods inventory as of April 1, 2026, is expected to be 2,400 units.

The production of one finished product requires 5 pounds of direct materials. The company wants its direct materials inventory at the end of each month to be equal to 10% of the amount required for production in the following month. The direct materials inventory as of April 1, 2026, meets this condition. The desired direct materials inventory is 10,000 pounds at the end of June.

1. How many units should be produced in April?

8,900 units 9,000 units 9,100 units 9,200 units 9,300 units

2. How many units should be produced in May?

14,200 units 14,400 units 14,600 units 14,800 units 15,000 units

3. How many units should be produced in June?

17,000 units 17,200 units 17,400 units 17,600 units 17,800 units

4. The desired ending inventory of finished goods at the end of second quarter

3,000 units 4,000 units 6,200 units 9,400 units 12,600 units

5. How many units should be produced in second quarter of 2026?

40,200 units 40,400 units 40,600 units 40,800 units 41,000 units

6. What should the direct material inventory be on April 1, 2026?

4,400 pounds 4,600 pounds 4,800 pounds 5,000 pounds 5,200 pounds

7. How many pounds of direct materials should be purchased in April?

47,800 pounds 48,000 pounds 48,200 pounds 48,400 pounds 48,600 pounds

8. How many pounds of direct materials should be purchased in May?

72,700 pounds 72,900 pounds 73,100 pounds 73,300 pounds 73,500 pounds

9. How many pounds of direct materials should be purchased in June?

85,700 pounds 85,900 pounds 86,100 pounds 86,300 pounds 86,500 pounds

10. How many pounds should be purchased in sencond quarter of 2026

208,400 pounds 208,600 pounds 208,800 pounds 209,000 pounds 209,200 pounds

11. Cash collections for May are

49,000 baht 50,000 baht 51,000 baht 52,000 baht 53,000 baht

12. Cash collections for June are

79,000 baht 80,000 baht 81,000 baht 82,000 baht 84,000 baht

The following data for items 13-15

The following information pertains to Samutai Department Store's budget for the third quarter of 2026:

Month	Jul	Aug.	Sep.	Oct.
Sales (Baht)	900,000	880,000	920,000	1,000,000

- Gross margin of 45% of sales. - The desired an ending merchandise inventory is 20% of the cost of goods sold in the following month.

13. What is the budgeted cost of merchandise purchases for July?

493,000 baht 492,900 baht 492,800 baht 492,700 baht 492,600 baht

14. What is the budgeted cost of merchandise purchases for August?

488,200 baht 488,300 baht 488,400 baht 488,500 baht 488,600 baht

15. What is the desired ending merchandies inventory at the end of third quarter?

98,800 baht 110,000 baht 143,400 baht 176,000 baht 242,000 baht