Exam 8: Master Budgeting

The budgeted purchases for May are:

The basic idea underlying responsibility accounting is that a manager should be held responsible for those items-and only those items-that the manager can actually control to a significant extent.

If the budgeted cost of raw materials purchases in February is $50,152, then the budgeted accounts payable balance at the end of February is closest to:

Pooler Corporation is working on its direct labor budget for the next two months.Each unit of output requires 0.15 direct labor-hours.The direct labor rate is $7.00 per direct labor-hour.The production budget calls for producing 6,500 units in April and 6,200 units in May.The company guarantees its direct labor workers a 40-hour paid work week.With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 1,000 hours in total each month even if there is not enough work to keep them busy.What would be the total combined direct labor cost for the two months?

Which of the following statements is NOT correct concerning the Cash Budget?

The beginning inventory for September should be:

The following information relates to Mapfes Manufacturing Corporation for next quarter: How many units should the company plan on producing for the month of February?

To attain its desired ending cash balance for January, the company should borrow:

The direct labor budget of Faver Corporation for the upcoming year contains the following details concerning budgeted direct labor-hours. The company's variable manufacturing overhead rate is $4.00 per direct labor-hour, and the company's fixed manufacturing overhead is $60,000 per quarter.The only noncash item included in the fixed manufacturing overhead is depreciation which is $20,000 per quarter. Required: Prepare Faver Corporation's manufacturing overhead budget for the upcoming fiscal year.Show both manufacturing overhead expense and cash disbursements for manufacturing overhead.

The budgeted accounts receivable balance at the end of November is closest to:

The expected cash collections for November is closest to:

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry.Data regarding the store's operations follow: o Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January. o Collections are expected to be 85% in the month of sale and 15% in the month following the sale. o The cost of goods sold is 60% of sales. o The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. o Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $21,200. o Monthly depreciation is $21,000. o Ignore taxes. Required: a.Prepare a Schedule of Expected Cash Collections for November and December. b.Prepare a Merchandise Purchases Budget for November and December. c.Prepare Cash Budgets for November and December. d.Prepare Budgeted Income Statements for November and December. e.Prepare a Budgeted Balance Sheet for the end of December.

The difference between cash receipts and cash disbursements for December would be:

The expected cash collections for May is closest to:

Jeanclaude Corporation produces and sells one product.The budgeted selling price per unit is $105.Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively.All sales are on credit.Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to:

BW Department Store expects to generate the following sales for the next three months: BW's cost of goods sold is 60% of sales dollars.At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold.What dollar amount of merchandise inventory should BW plan to purchase in August?

A sales budget is given below for one of the products manufactured by the Key Co.: The inventory of finished goods at the end of each month should equal 20% of the next month's sales.However, on December 31 the finished goods inventory totaled only 4,000 units. Each unit of product requires three specialized electrical switches.Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs.This requirement had been met on January 1 of the current year. Required: a.Prepare a budget showing the required production each month for January, February, March, and April. b.Prepare a budget showing the quantity of switches to be purchased each month for January, February, and March. March.

The total cost of Jurislon to be purchased in August is:

The cash budget is the starting point in preparing the master budget.

Bustillo Inc.is working on its cash budget for March.The budgeted beginning cash balance is $35,000.Budgeted cash receipts total $142,000 and budgeted cash disbursements total $151,000.The desired ending cash balance is $30,000.To attain its desired ending cash balance for March, the company needs to borrow: