Exam 9: Budgetary Planning

The master budget reflects management's long-term plans encompassing five years or more.

The culmination of preparing operating budgets is the

The production budget shows that expected unit sales are 48,000. The total required units are 54,000. What are the required production units?

In order to develop a budgeted balance sheet, the previous year's balance sheet is needed.

Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month?

Which one of the following is not needed in preparing a production budget?

Which of the following is not a financial budget?

Financial planning models and statistical and mathematical techniques may be used in forecasting sales.

If a company has adopted continuous budgeting, the budget will show plans for

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods sold for June would be

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

Which one of the following is not a benefit of budgeting?

Budgeting in not-for-profit organizations

The direct materials budget is derived from the direct materials units required for production plus desired ending direct materials units less beginning direct materials units.

Lark Corp.'s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Long-range planning usually encompasses a period of at least

Of the following items, which one is not obtained from an individual operating budget?

At January 1, 2019, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the first quarter of 2019 with a 12% increase in sales each quarter. Deer'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 2019?

Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at