Question 1

The budgeted income statement is typically prepared before the budgeted balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Sioux Corporation is estimating the following sales for the first four months of next year:   Sales are normally collected 60% in the month of sale and 40% in the month following the sale.Based on this information, how much cash should Sioux expect to collect during the month of April?

Accepted Answer

A) $370,000 
B) $222,000 
C) $119,000 
D) $358,000 
A) $370,000 
B) $222,000 
C) $119,000 
D) $358,000

Question 3

Control involves developing goals and preparing various budgets to achieve those goals.

Accepted Answer

A) True 
 B)False

Question 4

In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.

Accepted Answer

A) True 
 B)False

Question 5

The Tobler Corporation has budgeted production for next year as follows:    Four pounds of raw materials are required for each unit produced.Raw materials on hand at the start of the year total 4,000 pounds.The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs.Budgeted purchases of raw materials in the third quarter would be:

Accepted Answer

A) 63,200 pounds 
B) 62,400 pounds 
C) 56,800 pounds 
D) 50,400 pounds 
A) 63,200 pounds 
B) 62,400 pounds 
C) 56,800 pounds 
D) 50,400 pounds

Question 6

If the budgeted cost of raw materials purchases in October is $116,772 and in November is $129,120, then in November the total budgeted cash disbursements for raw materials purchases is closest to:

Accepted Answer

A) $81,740 
B) $90,384 
C) $38,736 
D) $120,476 
A) $81,740 
B) $90,384 
C) $38,736 
D) $120,476

Question 7

The cost of December merchandise purchases would be:

Accepted Answer

A) $248,000 
B) $232,000 
C) $117,600 
D) $192,000 
A) $248,000 
B) $232,000 
C) $117,600 
D) $192,000

Question 8

How much cash should Acti expect to pay out for raw material purchases during November?

Accepted Answer

A) $908,000 
B) $438,000 
C) $564,000 
D) $344,000 
A) $908,000 
B) $438,000 
C) $564,000 
D) $344,000

Question 9

The budgeted cash disbursements for December are:

Accepted Answer

A) $382,500 
B) $442,500 
C) $472,500 
D) $477,500 
A) $382,500 
B) $442,500 
C) $472,500 
D) $477,500

Question 10

The following information was taken from the production budget of Piwte Corporation for next quarter:   How many units is the company expecting to sell in the month of February?

Accepted Answer

A) 132,000 
B) 138,000 
C) 135,000 
D) 134,000 
A) 132,000 
B) 138,000 
C) 135,000 
D) 134,000

Question 11

The estimated net operating income (loss)for February is closest to:

Accepted Answer

A) $11,620 
B) $81,620 
C) $41,000 
D) $29,640 
A) $11,620 
B) $81,620 
C) $41,000 
D) $29,640

Question 12

The amount of cash collected during June should be:

Accepted Answer

A) $32,000 
B) $40,000 
C) $40,400 
D) $41,000 
A) $32,000 
B) $40,000 
C) $40,400 
D) $41,000

Question 13

Dustman Manufacturing Corporation's most recent production budget indicates the following required production:   Each unit of finished product requires 3 feet of raw materials.The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs.The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot.What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February?

Accepted Answer

A) $73,575 
B) $74,250 
C) $81,000 
D) $80,325 
A) $73,575 
B) $74,250 
C) $81,000 
D) $80,325

Question 14

The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 15

The company plans to sell 39,000 units of Product WZ in June.The finished goods inventories on June 1 and June 30 are budgeted to be 200 and 100 units, respectively.Budgeted direct labor costs for June would be:

Accepted Answer

A) $1,984,325 
B) $1,974,175 
C) $1,979,250 
D) $564,050 
A) $1,984,325 
B) $1,974,175 
C) $1,979,250 
D) $564,050

Question 16

The net income for December would be:

Accepted Answer

A) $39,300 
B) $42,300 
C) $32,900 
D) $55,300 
A) $39,300 
B) $42,300 
C) $32,900 
D) $55,300

Question 17

Expected cash collections in December are:

Accepted Answer

A) $310,000 
B) $101,500 
C) $303,000 
D) $201,500 
A) $310,000 
B) $101,500 
C) $303,000 
D) $201,500

Question 18

Paradise Corporation budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels (in units)are planned for next year.   * Three pounds of raw material are needed to produce each unit of finished product.

If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be:

Accepted Answer

A) 500,000 units 
B) 520,000 units 
C) 510,000 units 
D) 570,000 units 
A) 500,000 units 
B) 520,000 units 
C) 510,000 units 
D) 570,000 units

Question 19

The estimated direct labor cost for August is closest to:

Accepted Answer

A) $465,000 
B) $684,992 
C) $31,136 
D) $244,640 
A) $465,000 
B) $684,992 
C) $31,136 
D) $244,640

Question 20

The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

Accepted Answer

A) True 
 B)False

The budgeted income statement is typically prepared before the budgeted balance sheet.

Sioux Corporation is estimating the following sales for the first four months of next year: Sales are normally collected 60% in the month of sale and 40% in the month following the sale.Based on this information, how much cash should Sioux expect to collect during the month of April?

Control involves developing goals and preparing various budgets to achieve those goals.

In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.

If the budgeted cost of raw materials purchases in October is $116,772 and in November is $129,120, then in November the total budgeted cash disbursements for raw materials purchases is closest to:

The cost of December merchandise purchases would be:

How much cash should Acti expect to pay out for raw material purchases during November?

The budgeted cash disbursements for December are:

The following information was taken from the production budget of Piwte Corporation for next quarter: How many units is the company expecting to sell in the month of February?

The estimated net operating income (loss)for February is closest to:

The amount of cash collected during June should be:

The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.

The company plans to sell 39,000 units of Product WZ in June.The finished goods inventories on June 1 and June 30 are budgeted to be 200 and 100 units, respectively.Budgeted direct labor costs for June would be:

The net income for December would be:

Expected cash collections in December are:

The estimated direct labor cost for August is closest to:

The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 8: Master Budgeting

The budgeted income statement is typically prepared before the budgeted balance sheet.

Sioux Corporation is estimating the following sales for the first four months of next year: Sales are normally collected 60% in the month of sale and 40% in the month following the sale.Based on this information, how much cash should Sioux expect to collect during the month of April?

Control involves developing goals and preparing various budgets to achieve those goals.

In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period.

If the budgeted cost of raw materials purchases in October is $116,772 and in November is $129,120, then in November the total budgeted cash disbursements for raw materials purchases is closest to:

The cost of December merchandise purchases would be:

How much cash should Acti expect to pay out for raw material purchases during November?

The budgeted cash disbursements for December are:

The following information was taken from the production budget of Piwte Corporation for next quarter: How many units is the company expecting to sell in the month of February?

The estimated net operating income (loss)for February is closest to:

The amount of cash collected during June should be:

The manufacturing overhead budget lists all costs of production other than direct materials and direct labor.

The company plans to sell 39,000 units of Product WZ in June.The finished goods inventories on June 1 and June 30 are budgeted to be 200 and 100 units, respectively.Budgeted direct labor costs for June would be:

The net income for December would be:

Expected cash collections in December are:

The estimated direct labor cost for August is closest to:

The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters