Exam 9: The Master Budget

DogDayz Company has two products: Doggyz and Pupz.A March sales forecast projects 22,000 units of Doggyz and 15,000 units of Pupz are going to be sold at prices of $17.50 and $12.00,respectively.The desired ending inventory of Doggyz is 20% higher than the beginning inventory,which was 2,000 units.How much are total March sales for Doggyz anticipated to be?

The ________ budget is a component in a financial budget.

Sander Enterprises prepared the following sales budget: The expected gross profit rate is 40% and the inventory at the end of February was $10,000.Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the budgeted cost of goods sold for May?

Which of the following is an advantage of zero-based budgeting?

The ________ budget is a component in a financial budget.

Rachel's Beach Shoppe charges tourists to use their credit cards to purchase merchandise at the vacation store.On Monday,Rachel sold $2,500 in merchandise to tourists that used their credit cards to purchase beachwear at the store.The bank charges Rachel's store 1.15% of the total credit card purchases per day to settle the credit transactions.What is the total deposit Rachel expects the bank to deposit into her account after the total bank fees and charges are taken out of the credit purchases on Monday?

Byerly Corporation anticipates the following sales revenue over a five month period: Byerly Corporation's sales are 40% cash and 60% credit.The Byerly Corporation's collection history indicates that credit sales are collected as follows: Required: Prepare a cash collections budget for each month in the quarter (January,February,and March)and for the quarter in total.

The sales budget is the cornerstone of the master budget.

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 25% in the month of purchase,65% in the following month,and 10% in the second month following purchase.Budgeted inventory purchases for June,July,and August are $15,000,$19,000 and $24,000,respectively.What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings?

Potato State Manufacturing is preparing its cash payments budget in the upcoming month.The following information pertains to the cash payments: a.Potato State Manufacturing pays for 70% of its direct materials purchases in the month of purchase and the remainder the following month.Last month's direct material purchases were $40,000,while First State Manufacturing anticipates $45,000 of direct material purchases this coming month. b.Direct labor for the upcoming month is budgeted to be $25,000 and will be paid at the end of the upcoming month. c.Overhead is estimated to be 150% of direct labor cost each month and is paid in the month in which it is incurred.This monthly estimate includes $8,000 of depreciation on the plant and equipment. d.Monthly operating expenses for next month are expected to be $27,500,which includes $1,500 of depreciation on office equipment and $2,000 of bad debt expense.These monthly operating expenses are paid during the month in which they are incurred. e.Potato State Manufacturing will be making an estimated tax payment of $6,000 next month. Required: Prepare a cash payments budget for the month.

Desired ending inventory is 25% more than beginning inventory.If purchases total $160,000,which of the following statements is true regarding cost of goods sold (COGS)?

Which of the following alternatives reflects the proper order of preparing components of the master budget? 1.Production budget 2.Sales budget 3.Direct materials budget

Desired ending inventory is 20% of next month's sales.If cost of goods sold is $300,000 and next month's sales are $900,000,which of the following statements is true regarding purchases?

Which of the following budgets project cash inflows,cash outflows,and the budgeted balance sheet?

The four components of the operating budget are the sales budget;inventory,purchases and cost of goods sold budget;and the cash budget.

Budgets communicate financial plans to employees at all levels in the company.

Merchandisers use a "cost of goods sold,inventory,and purchases budget" to calculate the amount of merchandise to purchase.

The ________ is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process.

Cave Hardware's forecasted sales for April,May,June,and July are $200,000,$230,000,$190,000,and $240,000,respectively.Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale.Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold.All inventory purchases are paid 22% in the month of purchase and 78% in the following month. What are the budgeted cash payments in June to account for the inventory purchases at Cave Hardware?

All of the following budgets are prepared by merchandising companies except