Question

Conroe Inc. makes deep sea two-stage submersible pods for oceanic deep sea exploration and it costs Conroe, Inc. $44 per part to make 1,000 parts each month and each part can be sold for $69. Or Conroe could process the parts into a more intricately designed product, which would cost $38 more per part. The more intricately designed product could be sold for $103 per item. If the more intricately designed product was completed how would income be affected?

1. Profit would increase by $4,000.
2. Profit would increase by $34,000.
3. Profit would decrease by $4,000.
4. Profit would decrease by $34,000.

Spygate makes far outer space exploratory rockets and has planned production for the next few months as follows: July 6,400 rockets, August 8,100 rockets, September 9,000 rockets. Monthly manufacturing MOH is budgeted to be $32,000 plus $6 per unit produced. What is budgeted manufacturing MOH for August?

1. $80,600
2. $32,000
3. $48,600
4. $86,000

Red Rover makes re-usable microbe testing pods that are transportable and has forecast sales to be $134,000 in February, $144,000 in March, $159,000 in April, and $149,000 in May. The average cost of goods sold (COGS) is 70% of sales. All sales are made on credit and are collected 60% in the month of sale, and 40% the month following. What are forecasted cash receipts in April?
1. $112,000
2. $150,000
3. $159,000
​​​​​​​4. $153,000

Slippy makes re-usable microbe testing pods that are transportable and has planned sales of be $209,000 in February, $276,000 in March, $293,000 in April, and $313,000 in May. The average cost of goods sold (COGS) is 70% of sales. All sales are made on credit and sales are anticipated to be collected 50% in the month of sale, 40% the month following and the remainder two months after the sale. What are planned cash receipts in May?

1. $172,050
2. $301,300
3. $252,300
​​​​​​​4. $184,800

Answer 1

Ans.1 (3) decrease by $4000

• Intricately design cost- normal design cost
• [103-(38+44) - (69-44)]*1000
• -$4000 = $4000 decrease

Ans 2 - (1) $80,600

• MOH is $32000 + $6*(8100)
• 32,000+48,600
• $80,600

Ans.3- (4) $ 153,000

Cash receipts in april = 40% of march + 60% of april

• 60% * 159,000 + 40% * 144,000
• $153,000

Ans.4 - (2) $301,300

Month	Sales	Cash Receipts % in may	Cash Receipts
Feb	$        209,000
March	$        276,000	10%	$               27,600
April	$        293,000	40%	$             117,200
May	$        313,000	50%	$             156,500
Total			$             301,300