Use the information below to answer the following questions. Crystal Computers owns a chain of seven shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of September 2018 it had an overdraft of $100,000. In view of this, its managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information: $\begin{array}{lrrrrrr}&\text { Oct. } & \text { Nov. } & \text { Dec. } & \text { Jan. } & \text { Feb. } & \text {March } \\ &\$ 000 & \$ 000 & \$ 000 & \$ 000 & \$ 000 & \$ 000\\ \text { Cash Sales forecast } & 250 & 200 & 250 & 350 & 200 & 80 \\ \text { Cash Purchases } & 180 & 160 & 130 & 40 & 50 & 60 \\ \text { Wages and Salaries } & 40 & 40 & 50 & 40 & 40 & 45 \\ \text { Rent } & & & 80 & & &\\ \text { Rates } & & & & & & 60 \\ \text { Other Expenses } & 25 & 25 & 25 & 25 & 25 & 25\\ \text { Refurbishing Shops }&&&&&&{80} \\ &245 & 225 & 285 & 185 & 115 & 190\\ \end{array}$ -Refer to the table above. The projected cash balance at the end of October is:

A) ($245,000). B) $6,000. C) ($5,000). D) ($95,000). A) ($245,000). B) $6,000. C) ($5,000). D) ($95,000).

Use the information below to answer the following questions. Sales in December were $960,000. Projected sales for the first quarter of 2018 are: \[\begin{array} { l l } \text { January } & \$ 1,080,000 \\ \text { February } & \$ 1,300,000 \\ \text { March } & \$ 1,280,000 \end{array}\] Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale. -Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

A) $256,000. B) $960,000. C) $2,848,000. D) $732,000. A) $256,000. B) $960,000. C) $2,848,000. D) $732,000.

Use the information below to answer the following questions. Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2017 and planned sales for the first quarter of 2018 . $\begin{array} { l l r r r } & & \text { Cash } & \text { Credit } & \text { Total } \\ 2017 \text { Actual Sales for } & \text { November } & 25,000 & 25,000 & 50,000 \\ & \text { December } & 35,000 & 40,000 & 75,000 \\ 2018 \text { Estimated Sales for } & \text { January } & 15,000 & 20,000 & 35,000 \\ & \text { February } & 18,000 & 30,000 & 48,000 \\ & \text { March } & 22,000 & 40,000 & 62,000 \end{array}$ Past records ind icate that expected receipts collected from debtors will be: 60 per cent in the month of sale 40 percent in the month following the sale -Refer to the table above. What is the projected cash inflow from accounts receivable in February?

A) $32,000. B) $48,000. C) $26,000. D) $18,000. A) $32,000. B) $48,000. C) $26,000. D) $18,000.

Use the information below to answer the following questions. Crystal Computers owns a chain of seven shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of September 2018 it had an overdraft of $100,000. In view of this, its managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information: $\begin{array}{lrrrrrr}&\text { Oct. } & \text { Nov. } & \text { Dec. } & \text { Jan. } & \text { Feb. } & \text {March } \\ &\$ 000 & \$ 000 & \$ 000 & \$ 000 & \$ 000 & \$ 000\\ \text { Cash Sales forecast } & 250 & 200 & 250 & 350 & 200 & 80 \\ \text { Cash Purchases } & 180 & 160 & 130 & 40 & 50 & 60 \\ \text { Wages and Salaries } & 40 & 40 & 50 & 40 & 40 & 45 \\ \text { Rent } & & & 80 & & &\\ \text { Rates } & & & & & & 60 \\ \text { Other Expenses } & 25 & 25 & 25 & 25 & 25 & 25\\ \text { Refurbishing Shops }&&&&&&{80} \\ &245 & 225 & 285 & 185 & 115 & 190\\ \end{array}$ -Refer to the table above. The projected cash balance at the end of November is:

A) ($25,000). B) ($120,000). C) $25,000. D) ($100,000). A) ($25,000). B) ($120,000). C) $25,000. D) ($100,000).

Prepare a flexible cost budget for 8,000, 9,000 and 10,000 units of output, given the following data: Variable costs: $\begin{array}{lr} \text { Direct materials } & \$ 5 \\ \text { Direct labour } & 4 \\ \text { Variable manufacturing overhead } & 8 \end{array}$ Budgeted fixed manufacturing overhead $\$ 90,000$.

The answer of Prepare a flexible cost budget for 8,000,...

Exam 11: Budgeting

Use the information below to answer the following questions. Crystal Computers owns a chain of seven shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of September 2018 it had an overdraft of $100,000. In view of this, its managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information: Oct. Nov. Dec. Jan. Feb. March \ 000 \ 000 \ 000 \ 000 \ 000 \ 000 Cash Sales forecast 250 200 250 350 200 80 Cash Purchases 180 160 130 40 50 60 Wages and Salaries 40 40 50 40 40 45 Rent 80 Rates 60 Other Expenses 25 25 25 25 25 25 Refurbishing Shops 80 245 225 285 185 115 190 -Refer to the table above. The projected cash balance at the end of October is:

(Multiple Choice)

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Question 41

Use the information below to answer the following questions. Sales in December were $960,000. Projected sales for the first quarter of 2018 are: January \ 1,080,000 February \ 1,300,000 March \ 1,280,000 Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale. -Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

(Multiple Choice)

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Question 42

The original budget was set at 15,000 units and estimated variable overheads at $345,000 ($23 per unit). If actual output is 16,000 units, calculate the variable overhead total and unit cost that would be shown in a budget flexed to actual output.

(Multiple Choice)

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Question 43

Which of these is not a limitation of the traditional approach to control through budgets?

(Multiple Choice)

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Question 44

The expense that does not appear in a cash budget is:

(Multiple Choice)

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Question 45

Budget formats can best be described as:

(Multiple Choice)

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Question 46

If actual income is $48,500 and budgeted income is $56,000 and actual utilities is $5,000 and budgeted utilities is $5,500, the variances are respectively: Note: F - Favourable, U - Unfavourable (adverse).

(Multiple Choice)

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Question 47

What does management by exception refer to in the budgeting process?

(Multiple Choice)

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Question 48

The variances which management should investigate each month are:

(Multiple Choice)

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Question 49

What is the main way in which budgets provide a means of control in an organisation?

(Multiple Choice)

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Question 50

The Gel Company, hair products wholesaler, budgeted $180,000 of credit sales and $30,000 of cash sales for June. All merchandise is marked up to sell at 125% of its invoice cost. What is the budgeted cost of sales for June?

(Multiple Choice)

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Question 51

If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?

(Multiple Choice)

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Question 52

Use the information below to answer the following questions. Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2017 and planned sales for the first quarter of 2018 . Cash Credit Total 2017 Actual Sales for November 25,000 25,000 50,000 December 35,000 40,000 75,000 2018 Estimated Sales for January 15,000 20,000 35,000 February 18,000 30,000 48,000 March 22,000 40,000 62,000 Past records ind icate that expected receipts collected from debtors will be: 60 per cent in the month of sale 40 percent in the month following the sale -Refer to the table above. What is the projected cash inflow from accounts receivable in February?

(Multiple Choice)

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Question 53

If budgeted profit is $11,000, favourable variances are $3,100 and unfavourable variances are $7,450, actual profit (loss)is:

(Multiple Choice)

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Question 54

Coordination between budgets refers to a situation when:

(Multiple Choice)

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Question 55

Use the information below to answer the following questions. Crystal Computers owns a chain of seven shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of September 2018 it had an overdraft of $100,000. In view of this, its managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information: Oct. Nov. Dec. Jan. Feb. March \ 000 \ 000 \ 000 \ 000 \ 000 \ 000 Cash Sales forecast 250 200 250 350 200 80 Cash Purchases 180 160 130 40 50 60 Wages and Salaries 40 40 50 40 40 45 Rent 80 Rates 60 Other Expenses 25 25 25 25 25 25 Refurbishing Shops 80 245 225 285 185 115 190 -Refer to the table above. The projected cash balance at the end of November is:

(Multiple Choice)

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Question 56

An adverse variance is best described as a:

(Multiple Choice)

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Question 57

If actual sales are $96,000 and budgeted sales are $87,000 and actual advertising paid is $6,100 and budgeted advertising is $7,300, the variances are respectively are: Note: F - Favourable, U - Unfavourable (adverse).

(Multiple Choice)

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(90)

Question 58

Prepare a flexible cost budget for 8,000, 9,000 and 10,000 units of output, given the following data: Variable costs: Direct materials \ 5 Direct labour 4 Variable manufacturing overhead 8 Budgeted fixed manufacturing overhead $\$ 90,000$ .

(Essay)

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Question 59

Budget targets should be:

(Multiple Choice)

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Question 60

The original budget was set at 15,000 units and estimated variable overheads at $345,000 ($23 per unit). If actual output is 16,000 units, calculate the variable overhead total and unit cost that would be shown in a budget flexed to actual output.

Which of these is not a limitation of the traditional approach to control through budgets?

The expense that does not appear in a cash budget is:

Budget formats can best be described as:

If actual income is $48,500 and budgeted income is $56,000 and actual utilities is $5,000 and budgeted utilities is $5,500, the variances are respectively: Note: F - Favourable, U - Unfavourable (adverse).

What does management by exception refer to in the budgeting process?

The variances which management should investigate each month are:

What is the main way in which budgets provide a means of control in an organisation?

The Gel Company, hair products wholesaler, budgeted $180,000 of credit sales and $30,000 of cash sales for June. All merchandise is marked up to sell at 125% of its invoice cost. What is the budgeted cost of sales for June?

If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?

If budgeted profit is $11,000, favourable variances are $3,100 and unfavourable variances are $7,450, actual profit (loss)is:

Coordination between budgets refers to a situation when:

An adverse variance is best described as a:

If actual sales are $96,000 and budgeted sales are $87,000 and actual advertising paid is $6,100 and budgeted advertising is $7,300, the variances are respectively are: Note: F - Favourable, U - Unfavourable (adverse).

Prepare a flexible cost budget for 8,000, 9,000 and 10,000 units of output, given the following data: Variable costs: Direct materials \ 5 Direct labour 4 Variable manufacturing overhead 8 Budgeted fixed manufacturing overhead $\$ 90,000$ .

Budget targets should be:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 11: Budgeting

The original budget was set at 15,000 units and estimated variable overheads at $345,000 ($23 per unit). If actual output is 16,000 units, calculate the variable overhead total and unit cost that would be shown in a budget flexed to actual output.

Which of these is not a limitation of the traditional approach to control through budgets?

The expense that does not appear in a cash budget is:

Budget formats can best be described as:

If actual income is $48,500 and budgeted income is $56,000 and actual utilities is $5,000 and budgeted utilities is $5,500, the variances are respectively: Note: F - Favourable, U - Unfavourable (adverse).

What does management by exception refer to in the budgeting process?

The variances which management should investigate each month are:

What is the main way in which budgets provide a means of control in an organisation?

The Gel Company, hair products wholesaler, budgeted $180,000 of credit sales and $30,000 of cash sales for June. All merchandise is marked up to sell at 125% of its invoice cost. What is the budgeted cost of sales for June?

If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?

If budgeted profit is $11,000, favourable variances are $3,100 and unfavourable variances are $7,450, actual profit (loss)is:

Coordination between budgets refers to a situation when:

An adverse variance is best described as a:

If actual sales are $96,000 and budgeted sales are $87,000 and actual advertising paid is $6,100 and budgeted advertising is $7,300, the variances are respectively are: Note: F - Favourable, U - Unfavourable (adverse).

Prepare a flexible cost budget for 8,000, 9,000 and 10,000 units of output, given the following data: Variable costs: Direct materials \ 5 Direct labour 4 Variable manufacturing overhead 8 Budgeted fixed manufacturing overhead $90,000\$ 90,000$90,000 .

Budget targets should be:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Prepare a flexible cost budget for 8,000, 9,000 and 10,000 units of output, given the following data: Variable costs: Direct materials \ 5 Direct labour 4 Variable manufacturing overhead 8 Budgeted fixed manufacturing overhead $\$ 90,000$ .