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Exam 6: Budgeting

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Question 21

Multiple Choice

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Budgeted production of Product A for the year would be

A) 22,400 units
B) 20,400 units
C) 20,000 units
D) 12,200 units

E) B) and C)
F) A) and D)

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Question 22

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After the sales budget is prepared, the capital expenditures budget is normally prepared next.

A) True
B) False

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Question 23

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Production and sales estimates for April are as follows: The number of units expected to be manufactured in April is

As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000.The sales for January, February, and March were as follows: $120,000, $140,000, and $150,000, respectively.Of each month's sales, 20% are for cash.Of the remaining 80% the credit sales, 60% are collected in the month of sale, with the remaining 40% collected in the following month.What is the total cash collected both from accounts receivable and for cash sales in the month of February?

At the beginning of the period, the Molding Department budgeted direct labor of $33,000 and supervisor salaries of $24,000 for 3,000 hours of production.The department actually completed 2,500 hours of production.Determine the budget for the department assuming that it uses flexible budgeting?

The budget procedures used by a large manufacturer of automobiles would probably not differ from those used by a small manufacturer of paper products.

The budgeting process does not involve which of the following activities?

Budget preparation is best determined in a top-down managerial approach.

The master budget of a small manufacturer would normally include all necessary component budgets except the capital expenditures budget.

The responsibility for coordinating the preparation of a master budget should be assigned to the CEO of a firm.

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; and cost of goods sold for the year, $2,560,000.The budgeted costs of goods manufactured for the year is

The cash budget is affected by the sales budget, the various budgets for manufacturing costs and operating expenses, and the capital expenditures budget.

Heedy Company is trying to decide how many units of merchandise to produce each month.The company policy is to have 20% of the next month's sales in inventory at the end of each month.Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively.How many units must be produced in September?

Production and sales estimates for June are as follows: The number of units expected to be manufactured in June is

Which of the following budgets is not directly associated with the production budget?

Supervisor salaries, maintenance, and indirect factory wages would normally appear in the factory overhead cost budget.

The operating budgets of a company includes the

Past performance is the best overall basis for evaluating current performance and assessing the need for corrective action.

The budget process involves doing all of the following except

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; and cost of goods sold, $2,560,000.The budgeted costs of goods manufactured is