Exam 6: Budgeting

Purple Co.'s production budget for Product X for the year ended December 31 is as follows: In Purple's production operations, Materials A, B, and C are required to make Product X.The quantities of direct materials expected to be used for each unit of product are as follows: Product X Material A 0.50 pound per unit Material B 1.00 pound per unit Material C 1.20 pound per unit The prices of direct materials are as follows: Material A $0.60 per pound Material B $1.70 per pound Material C $1.00 per pound Prepare a direct materials purchases budget for Product X, assuming that there are no beginning or ending inventories for direct materials all units purchased are used in production.

For March, sales revenue is $1,000,000; sales commissions are 5% of sales; the sales manager's salary is $80,000; advertising expenses are $65,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,100 plus 1% of sales.Total selling expenses for the month of March are

Good Eats Inc.manufactures flatware sets.The budgeted production is for 80,000 sets this year.Each set requires 2.5 hours to polish the material.If polishing labor costs $15.00 per hour, determine the direct labor cost budget for polishing for the year.

Match each phrase that follows with the term a-f it describes.. -an accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period

The first budget to be prepared is usually the sales budget.

The sales budget is the starting point for preparation of the direct labor cost budget.

For April, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $98,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales.Total selling expenses for the month of April are

The cash collections in November are

What is the budgeted unit of production for January?

The dollar amount of Material B used in production during the year is

The budgeted direct materials purchases is normally computed as the sum of 1 the materials for production and 2 the desired ending inventory.

The budgeted volume of production is normally computed as the sum of 1 the expected sales volume and 2 the desired ending inventory.

Southern Company is preparing a cash budget for April.The company has $12,000 cash at the beginning of April and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during April.Southern Company has an agreement with its bank to maintain a minimum cash balance of $10,000.To maintain the required balance during April, the company must

Based on the following production and sales data of Frixion Co.for March of the current year, prepare a a sales budget and b a production budget.

Budgeted production for product ZZZ during the month is

Doran Technologies produces a single product.Expected manufacturing costs are as follows: Variable costs Direct materials $4.00 per unit Direct labor $1.20 per unit Manufacturing overhead $0.95 per unit Fixed costs per month Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month.

Match each phrase that follows with the term a-e it describes. -compares actual performance against budgeted goals

Sleep Tight manufactures comforters.The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $33,000, and $27,000, respectively.The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $35,000, and $21,000, respectively.Direct material purchases were $575,000, direct labor was $212,000 for the year, and factory overhead was $156,000.Prepare a cost of goods sold budget for Sleep Tight, Inc.

Jase Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power.Total fixed costs are $24,000.At 12,000 units of production, a flexible budget would show

The budgeted balance sheet assumes that all operating and financing plans are met.