ACC 220 Ch. 11

Front

What is the financial advantage (disadvantage) of further processing Product A if it can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $16,500 and then sold for $30 per unit?

Back

$55,500

Front

What is the annual financial advantage (disadvantage) for Young Corporation of eliminating Product X, which sells 12,000 units at $15 each with a contribution margin of $5.50, and where $70,000 of the $80,000 in annual fixed costs could be eliminated?

Back

$4,000

Front

Budgeted unit sales for March, April, and May are 75,000, 80,000, and 90,000 units. Management desires to maintain an ending inventory equal to 30 percent of the next month's unit sales. How many units should be produced in April?

Back

83,000 units

Front

What is the amount of cash collections for April given the sales of March, April, and May are $100,000, $120,000, and $125,000, with 80% credit sales and 20% cash sales, where 60% of credit sales are collected in the month of the sale and 40% in the next month?

Back

$113,600

Front

What is the accounts receivable balance at the end of May if March, April, and May sales are $100,000, $120,000, and $125,000, respectively, with 80% credit sales and 20% cash sales, where 60% of credit sales are collected in the month of the sale and 40% in the next month?

Back

$40,000

Front

Are opportunity costs recorded in an organization’s general ledger?

Back

False

Front

Sunk costs are always irrelevant when choosing among alternative

Back

True

Front

Joint costs are relevant in decisions regarding what to do with a product from the split-off point forward. Therefore, these costs should be allocated to end products for decision-making purposes.

Back

False