FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Master Budgets and Performance Planning

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Bengal Co.provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales.Finished goods inventory on June 30 is 1,250 units. -The budgeted production units for July are:

A) 6,250 units.
B) 3,750 units.
C) 6,425 units.
D) 2,500 units.
E) 5,175 units.

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following budgets is not completed before a cash budget is prepared?

A) Capital expenditures budget.
B) Sales budget.
C) Merchandise purchases budget.
D) General and administrative expense budget.
E) Budgeted income statement.

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

The manufacturing budgets include the sales budget and the budgeted income statement.

If budgeted beginning inventory is $8,300,budgeted ending inventory is $9,400,and budgeted cost of goods sold is $10,260,budgeted purchases should be:

The sequence of the budgets within the master budget begins with the capital expenditures budget.

Which of the following accounts would appear on a budgeted balance sheet?

Which of the following must be prepared before the direct labor budget?

Memphis Company anticipates total sales for April,May,and June of $800,000,$900,000,and $950,000 respectively.Cash sales are normally 25% of total sales.Of the credit sales,30% are collected in the same month as the sale,65% are collected during the first month after the sale,and the remaining 5% are not collected. -Compute the amount of cash received from total sales during the month of June.

Flagstaff Company has budgeted July production of 7,900 units.Variable factory overhead is $1.20 per unit.Budgeted fixed factory overhead is $19,000,which includes $3,000 of factory equipment depreciation.Compute the total budgeted overhead for July.

Todd Enterprises is preparing a cash budget for the second quarter of the coming year.The following data have been forecasted: Additional data: (1)Sales are 40% cash and 60% credit.The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter.Total sales in March were $125,000. (2)Purchases are all on credit,with 40% paid in the month of purchase and 60% paid in the following month. (3)Operating expenses are paid in the month they are incurred. (4)A minimum cash balance of $25,000 is required at the end of each month. (5)Loans are used to maintain the minimum cash balance.At the end of each month,interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month.Repayments are made at the end of the month if the cash balance exceeds $25,000. Prepare the company's cash budget for May.Show the ending loan balance at May 31.

Addams,Inc.,is preparing its master budget for the second quarter.The following sales and production data have been forecasted: Finished goods inventory on March 31: 120 units Raw materials inventory on March 31: 450 pounds Desired ending inventory each month: Finished goods: 30% of next month's sales Raw materials: 25% of next month's production needs Number of pounds of raw material required per finished unit: 4 lbs. How many pounds of raw materials should be purchased in April?

Wichita Industries' sales are 10% for cash and 90% on credit.Credit sales are collected as follows: 30% in the month of sale,50% in the next month,and 20% in the second following month.Wichita Industries' had $12,000 from November sales and $42,000 from December sales.Assume that total sales for January and February are budgeted to be $50,000 and $100,000,respectively.What are the expected cash receipts for February from current and past sales?

What are rolling budgets? Why are rolling budgets prepared?

A rolling budget is relevant only to merchandising companies.

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

What is a cash budget? How can management use a cash budget?

Gardner Company expects sales for October of $248,000.Experience suggests that 45% of sales are for cash and 55% are on credit.The company collects 50% of its credit sales in the month of sale and 50% in the month following sale.Budgeted Accounts Receivable on September 30 is $67,000.What is the amount of cash expected to be collected in October?

Webster Corporation's budgeted sales for February are $325,000.Webster pays sales representatives a commission of 6% of sales dollars.The company pays a sales manager a monthly salary of $4,400 and expects advertising expense of $2,000 per month.Compute the total budgeted selling expenses for February.

A capital expenditures budget shows dollar amounts estimated to be spent to purchase additional plant assets and amounts expected to be received from plant asset disposals.

List the three important guidelines that should be followed in the budgeting process.