Exam 22: Master Budgets and Planning

Which of the following budgets is not an operating budget?

Use the following information to prepare a budgeted income statement for Stellar Company for the month of June. a.Beginning cash balance on June 1 is $52,000. b.Sales amounts are: April (actual),$1,450,000,May (actual),$1,600,000,and June (budgeted),$1,700,000. c.Cost of goods sold is 53% of sales. d.Budgeted cash disbursements for salaries in June: $260,000.Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30. e.Budgeted depreciation expense for June: $24,000. f.Other cash expenses budgeted for June: $282,000. g.Accrued income taxes due in June: $48,000. h.Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000. i.The income tax rate applicable to the company is 30%.

Zhang Industries sells a product for $700.Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%.Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales.Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30.

Dado,Inc.is preparing its budget for the second quarter.The following sales data have been forecasted: Prepare a merchandise purchases budget for the total units to be purchased in the months of April,May,and June,as well as the total unit purchases for entire the quarter.

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August.The direct materials requirement per unit is 2 ounces.The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 20% of the units budgeted in the following month.There was 3,160 ounces of direct material in inventory at the start of July.The total amount direct materials in ounces to be purchased in July is.

A plan that lists the types and amounts of operating expenses expected that are not included in the selling expenses budget is a:

The budgeted balance sheet and income statement are normally completed after preparation of operating and capital expenditure budgets.

Argenta,Inc.is preparing its master budget for the first quarter of its calendar year.The following forecasted data relate to the first quarter: Prepare a budgeted income statement for this first quarter.

Schrank Company is trying to decide how many units of merchandise to order each month.The company's 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 purchased in September?

A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit.The management forecasts 2% growth in sales each month.Total July sales are anticipated to be:

Use the following data to determine the company's cash disbursements for August and September:

The budgeted balance sheet is prepared primarily from data contained in the previously prepared components of the master budget.

The budget that lists the dollar amounts to be both received from plant asset disposals and spent to purchase additional plant assets to carry out the budgeted business activities is the __________________________.

A plan that shows the expected cash inflows and cash outflows during the budget period,including receipts from loans needed to maintain a minimum cash balance and repayments of such loans,is called a(n):

A managerial accounting report that presents predicted amounts of the company's revenues and expenses for the budget period is called a:

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

Garcia Manufacturing's April sales forecast projects that 5,000 units will sell at a price of $10.50 per unit.The desired ending inventory is 30% higher than the beginning inventory,which was 1,000 units.Budgeted purchases of units in April would be:

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 following month.On December 31,the accounts receivable balance includes $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?

Funcycle Manufacturing's budget includes the following credit sales for the current year: September,$145,000;October,$136,000;November,$120,000;December,$157,000.Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale,50% in the first month after sale,and 35% in the second month after sale.What are the cash collections of credit sales in the month of December?

Ratchet Manufacturing anticipates total sales for August,September,and October of $200,000,$210,000,and $220,500 respectively.Cash sales are normally 25% of total sales and the remaining sales are on credit.All credit sales are collected in the first month after the sale.Compute the amount of accounts receivable to be reported on the company's budgeted balance sheet for August.