Chapman inc (25 multiple choice question)

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

1. Chapman Inc. has several outdated computers that cost a total of $8,600 and could be sold as scrap for $4,600. They could be updated for an additional $2,400 and sold. If Chapman updates the computers and sells them, net income will increase by $5,400. What amount would be considered sunk costs?

A) $5,400

B) $11,000

C) $8,600

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

D) $1,200


2. It costs Chapman Company $18.40 of variable and $3.75 of fixed costs to produce one bathroom scale, which normally sells for $47.00. A foreign wholesaler offers to purchase 4,000 scales at $26.90 each. Chapman would incur special shipping costs of $2.75 per scale if the order were accepted. Chapman has sufficient unused capacity to produce the 4,000 scales. If the special order is accepted, what will be the effect on net income?

A) $107,600 increase

B) $23,000 increase

C) $8,000 increase

D) $23,000 decrease


6. Mesh Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials in August. 21ree-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August’s cash disbursements for materials purchases be?

A) $118,000

B) $64,500

C) $88,500

D) $110,000


8. The following information is taken from the production budget for the first quarter:

Beginning inventory in units 883

Sales budgeted for the quarter 338,000

Capacity in units of production facility 350,000

How many finished goods units should be produced during the quarter if the company desires 2,100 units available to start the next quarter?

A) 339,217

B) 340,100

C) 351,217

D) 336,783


9. Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine

Price $300,000 $600,000

Accumulated Depreciation 90,000 -O-

Remaining useful life 10 years -O-

Useful life -0- 10 years

Animal operating costs $240,000 $180,600


If the old machine is replaced, it can be sold for $24,000.

The net advantage (disadvantage) of replacing the old machine is

A) $18,000

B) $(6,000)

C) $24,000

D) $(60,000)


10. Astor Manufacturing has the following budgeted sales: January $120,000, February $180,000, and March $150,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:

A) $159,000.

B) $168,000.

C) $157,500.

D) $150,000.


12. Comma Co. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget for the month. The following budget data are available:

Item Variable Cost Per Unit Sold Monthly Fixed Cost

Sales commissions $1 $10,000

Shipping $3

Advertising $4

Executive salaries $120,000

Deprecíation on office equipment $4,000

Other $2 $6,000

Expenses are paid in the month incurred. If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

A) $930,000

B) $940,000

C) $800,000

D) $140,000


13. The cost to produce Part A was $82 per unit in 2012. During 2013, it has increased to $89 per unit. In 2013, Supplier Company has offered to supply Part A for $75 per unit. For the make-or-buy decision,

A) incremental revenues are $14 per unit.

B) incremental costs are $7 per unit.

C) net relevant costs are $7 per unit.

D) differential costs are $14 per unit.


15. At January 1, 2013, Farley, Inc. has beginning inventory of 2,000 surfboards. Farley estimates it will seli 5,000 units during the first quarter of 2013 with a 12% increase in sales each quarter. Farley’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2013?

A) $975,000

B) $6,272

C) $225,000

D) $940,800


16. If there were 68,000 pounds of raw materials on hand on January 1, 135,000 pounds are desired for inventory at January 31, and 400,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

A) 332,000 pounds

B) 197,000 pounds —

C) 535,000 pounds

D) 467,000 pounds


18. On January 1, Stranbrough Company has a beginning cash balance of $21,000. During the year, the company expects cash disbursements of $169,400 and cash receipts of $154,000. If Stranbrough requires an ending cash balance of $20,000, the company must borrow

A) $36,400.

B) $25,600.

C) $20,000.

D) $14,400.


7. Walton, Inc. is considering the following alternatives:


Alternative 1

Alternative 2

Revenues  $120,000 $120,000

Variable costs 32,000 43,000

Fixed costs 34,000 51,000


Which of the following are relevant in choosing between the alternatives?

A) Revenues

B) Variable costs and fixed costs

C) Fixed costs

D) Variable costs


11. Kalamoo produces several products that can be sold at the split-off point or then sold processed further.


The following results are from a recent period:

Product           Sales Value At Split-Off        Additional Variable Costs      Sales Value After Further Processing

Green Lumber             75,200                                     12,000                                     86,200

Rough Lumber            79,500                                     8,000                                       88,500

Sawdust          45,000                                     20,000                                     67,000


Which products should be processed further?

A) All three products

B) Green lumber and rough lumber

C) Rough lumber and sawdust

D) Green lumber and sawdust


19. Lytle Company reported the following information for 2013:


Octvber November December

Budgeted sales

$230,000 $220,000 $270,000

Budgeted purchases

$120,000 $128,000 $144,000

    All sales are on credit.

 Customer amounts on account are collected 50% in the month of sale and 50% in the following month.

        Cost of goods sold is 35% of sales.

Lytle purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.

Accounts payable is used only for inventory acquisitions.


How much cash will Lytle receive during November?

A)    $110,000

 B) $245,000

C) $220,000

D) $225,000


22. Walton Division has the following data:

Sales $660,000

Variable expenses 250,000

Fixed expenses 476,000

The fixed costs are not awidable and must be allocated to profitable divisions if the segment is eliminated. What will be the incrementa) effect on net income if Walton Division is eliminated?


A) $410,000 decease

B) $476,000 decrease

C) $66,000 íncrease

D) Cannot be determined from the data provided.


25. A company’s unit costs based on 500,000 units are:

Variable costs $32

Fixed costs 20

The normal unit sales price per unit is $110. A special order from a foreign company has been received for 4,000 units at $90 a unit. In order to fulfill the order, 2,000 units of regular sales would have to be foregone. The opportunity cost associated with this order is


A)    $64,000.

B) $180,000.

C) $220,000.

D) $156,000.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Religious studies
Excellent content and structure.
Customer 462681, April 24th, 2022
I received a 91 on the quiz, which is still a good gade.
Customer 452455, April 5th, 2023
Health Care
Thank you!
Customer 454001, March 11th, 2020
Excellent work. Looking forward to working with your in the future.
Customer 463467, November 11th, 2022
Foundations of Language and Literacy for Diverse Prekindergarten and Kindergarten Learners
Always cite used resources.
Customer 454463, May 2nd, 2022
Business and administrative studies
As I expected.
Customer 460551, December 15th, 2021
The paper was beautifully written and all instructions were followed exactly as stated. Thank you so much for delivering a quality paper.
Customer 452455, February 22nd, 2023
Healthcare & Medical
Good work!
Customer 452441, August 6th, 2022
English 101
She did an excellent job on my revision
Customer 464103, April 24th, 2023
This paper is beautifully written and is above my expectations. Thank you to the writer for writing a beautiful paper and a huge thank you to the customer service team for ensuring I received an outstanding product. I want to issue a special thank you to John for not only ensuring that I received an outstanding product, but also for assisting me with the website issues that I have been having. Thank you to everyone!
Customer 452455, April 5th, 2023
Excellent writing.
Customer 452441, April 26th, 2022
Customer 452441, April 12th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat