ACC 505

QUESTION 1
(TCO F) Bingham Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.

Work in process, beginning:

Ending work in process:

Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department. (Points : 25)

QUESTION 2

(TCO F) Payment Inc. is preparing its cash budget for February. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $136,000 and budgeted cash disbursements total $128,000. The desired ending cash balance is $50,000. The company can borrow up to $110,000 at any time from a local bank with interest not due until the following month.

Required: Prepare the company's cash budget for February in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. (Points : 25)                

QUESTION 3

Bella Lugosi Holdings, Inc. (BLH), has collected the following operating information below for its current month's activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.