Exam 6: Master Budget and Responsibility Accounting

Use the information below to answer the following question(s).Country Heather manufactures flowerpots.It expects to sell 40,000 flowerpots in 2019.The company had enough beginning inventory of direct materials to produce 48,000 units.Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units.The flowerpots sell for $6.00 and the company keeps no work-in-process inventory.Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00.Factory overhead is $0.40 per flowerpot. -How many flowerpots should Country Heather produce in 2019?

Answer the following question(s)using the information below.Furniture Inc.estimates the following number of mattress sales for the first four months of 2019: Finished goods inventory at the end of December 2018 is 1,500 units.Target ending finished goods inventory is 30% of the next month's sales. -How many mattresses need to be produced in January 2019?

Use the information below to answer the following question(s).Contempo Futon manufactures futons.The estimated number of sales for the last quarter of 2018 is as follows: Beginning finished goods inventory should be equal to 30 percent of that month's budgeted sales plus 10 percent of the following month's budgeted sales.January and February 2018 sales are anticipated to be 15,000 futons in each month.The cost to produce a futon is $125. -How many futons will Contempo Futon budget to be produced in the three months?

Use the information below to answer the following question(s).Country Heather manufactures flowerpots.It expects to sell 40,000 flowerpots in 2019.The company had enough beginning inventory of direct materials to produce 48,000 units.Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units.The flowerpots sell for $6.00 and the company keeps no work-in-process inventory.Direct materials costs for each flowerpot total $2.00 while direct labour is $1.00.Factory overhead is $0.40 per flowerpot. -What will be Country Heather's budgeted revenue?

Use the information below to answer the following question(s).Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019: -How many kilograms of material will need to be purchased for 2019 production and inventory requirements?

Use the information below to answer the following question(s).Boone Hobbies, a wholesaler, has a sales budget for next month of $600,000.Cost of units sold is expected to be 40 percent of sales.All units are paid for in the month following purchase.The beginning inventory of units is $20,000, and an ending amount of $24,000 is desired.Beginning accounts payable is $152,000. -Boone Hobbies budgeted purchases for next month is expected to be

Answer the following question(s)using the information below.The following information pertains to Tiffany Company: Cash is collected from customers in the following manner: 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.Labour costs are 20% of sales.Other operating costs are $15,000 per month (including $4,000 of depreciation).Both of these are paid in the month incurred.The cash balance on March 1 is $4,000.A minimum cash balance of $3,000 is required at the end of the month.Money can be borrowed in multiples of $1,000. -How much cash will be disbursed in total in March?

Answer the following question(s)using the information below.The following information pertains to Tiffany Company: Cash is collected from customers in the following manner: 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.Labour costs are 20% of sales.Other operating costs are $15,000 per month (including $4,000 of depreciation).Both of these are paid in the month incurred.The cash balance on March 1 is $4,000.A minimum cash balance of $3,000 is required at the end of the month.Money can be borrowed in multiples of $1,000. -How much cash will be paid to suppliers in March?

Planning the performance of the organization, providing a frame of reference, and investigating variances are part of the

Berry Company has gathered the following information: Berry desires to keep a minimum cash balance of $15,000.Required: Prepare a cash budget for May, and indicate whether or not Berry meets minimum cash requirements.

Describe the four types of responsibility centres.Give a specific example of each of the four types of responsibility centres.

List and describe the four approaches to budgeting.

Use the information below to answer the following question(s).Daniel Inc.expects to sell 6,000 ceramic vases for $20 each in 2018.Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase.Each vase requires 0.5 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2018: -How many ceramic vases need to be produced in 2018?

Budgets are advantageous because they

Use the information below to answer the following question(s).Daniel Inc.expects to sell 6,000 ceramic vases for $20 each in 2018.Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase.Each vase requires 0.5 kilograms (kg)of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2018: -On the 2018 budgeted income statement, what amount will be reported for cost of goods sold?

Benchmarks encourage the setting of stretch goals.

Answer the following question(s)using the information below.Sherry and John Enterprises are using the Kaizen approach to budgeting for 2019.The budgeted income statement for January 2019 is as follows: Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month. -Jermaine Company is developing its budgets for 2019 and for the first time will use the Kaizen approach.The initial 2019 income statement, based on static data from 2018, is as follows: Selling prices for 2019 are expected to increase by 8 percent, and sales volume in units will decrease by 10 percent.The cost of goods sold as estimated by the Kaizen approach will decline by 10 percent per unit.Other than amortization, all other operating costs are expected to decline by 5 percent.Required: Prepare a Kaizen-based budgeted income statement for 2019.

The actual data resulting from a strategy should be compared to budgeted results.

The objective of activity-based budgeting is

The following information pertains to Amigo Corporation: Cash is collected from customers in the following manner: * Customers paying in the month of sale receive a 2% cash discount.40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.Required: a.Prepare a summary of cash collections for the 4th quarter. b.Prepare a summary of cash disbursements for the 4th quarter.