Exam 9: Budgeting, Production, Cash, and Master Budget

A strategic plan identifies strategies for future activities and operations, generally covering at least five years.

May \ 100,000 June \ 120,000 July \ 130,000 August (expected) \ 150,000 -Refer to Miso Company. What dollar value of May's sales is expected to be uncollectible?

Bingimton Company Bingimton Company provided the following information for last month. Production in units 1,000 Direct materials cost \ 3,000 Direct labour cost \ 4,000 Manufacturing overhead cost \ 7,600 Sales commission per unit sold \ 2 Price per unit sold \ 24 Fixed selling and administrative expense \ 5,000 There were no beginning and ending inventories. -Refer to Bingimton Company. What is the cost of goods sold per unit?

Dickson Company has the following projected account balances for September 30 of the current year: Accounts payable \ 20,000 Sales \ 400,000 Accounts receivable 50,000 Capital stock 200,000 Depreciation, factory 12,000 Retained earnings 64,000 (beginning) Finished Goods Inventories 90,000 Maintenance, factory 14,000 (8/31) Finished Goods Inventories 90,000 Cash 28,000 (9/30) Materials used 100,000 Equipment, net 120,000 Office salaries 40,000 Buildings, net 200,000 Insurance, factory 2,000 Utilities, factory 8,000 Factory wages 70,000 Selling expenses 30,000 Bonds payable 80,000 Required: A. Prepare a budgeted income statement for the month ended September 30. B. Prepare a budgeted balance sheet as of September 30.

Ideally, managers are held accountable for controllable costs.

Ulna Company production has variable manufacturing overhead costs of $8 per direct labour hour and fixed manufacturing overhead costs of $56,000 per month. Budgeted production for the next three months is as follows: Month Production October 6,000 November 5,500 December 8,000 Each unit requires three hours of direct labour. Required: A. Calculate Ulna's total variable manufacturing overhead for October. B. Calculate Ulna's total manufacturing overhead for October. C. Calculate Ulna's total variable manufacturing overhead for November. D. Calculate Ulna's total fixed manufacturing overhead for December. E. Calculate Ulna's total budgeted manufacturing overhead for the last three months of the year.

Which schedule shows the planned ending cash balance for the year?

Myopic behaviour is one of the advantages of participative budgeting.

Identify each item as either part of the operating budget or the financial budget. -Sales budget

Refer to Stumble Inc. How many units are budgeted for production in March?

King Corporation has the following budgeted sales for the selected six-month period: Month Unit Sales June 15,000 July 20,000 August 35,000 September 25,000 October 30,000 November 20,000 There were 7,500 units of finished goods inventory at the beginning of June. Plans are to have a finished goods inventory equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each unit produced. Each kilogram of material costs $20. Ending direct materials inventory equals 30% of the needs for the next month. Direct materials inventory on June 1 was 5,000 kg. Required: A. Prepare production budgets in units for July, August, and September. B. Prepare a purchases budget in kilograms and dollars for July, August, and September.

Identify each item as a component of one of the following budgets.* Each option may be used more than once, and it is possible that one or more of the options may not be used at all. -Ending finished goods inventory

Calino Company developed the following data for the month of August. 1 August 1 cash balance $12,300. 2 Cash sales in August $80,000. 3 Credit sales for August are $30,000; for July $40,000; and for June $40,000. 70% of credit sales are collected in the month of sale, 15% in the following month, and 10% in the second month following the sale. 4 Purchases for July were $50,000 and for August are $40,000. One-fourth of purchases are paid in the month of purchase, and the remaining three-quarters in the following month. 5 August salaries are $31,400, utilities are $3,220, and depreciation on the building and equipment is $10,000. Required: A. Calculate the anticipated cash receipts from accounts receivable in August. B. Calculate the anticipated total cash available from all sources in August. C. Calculate the August cash payments for purchases made in July and August. D. Calculate the anticipated cash balance on August 31.

What does budgeted operating income include?

Which budget describes how many units must be made to meet sales needs and ending finished goods inventory objectives?

Identify each item as a component of one of the following budgets.* Each option may be used more than once, and it is possible that one or more of the options may not be used at all. -Unit selling price

Identify each item as either part of the operating budget or the financial budget. -Budgeted balance sheet

Refer to Wallen Company. What is the budgeted operating income?

Glouster Company makes power tools. The sales budget for drills for the first four months of the year is: Month Unit Sales January 20,000 February 15,000 March 22,000 April 25,000 The company has taken a just-in-time approach to production and wants only 5% of the next month's sales needs in ending finished goods inventory. January 1 finished goods inventory of drills was zero. Each drill takes 15 minutes of direct labour at $18 per hour. The manufacturing overhead formula is $27,000 + $1.20 per direct labour hour. Required: A. Calculate the budgeted production for January. B. Calculate the budgeted production for February. C. Calculate the budgeted production for the entire first quarter of the year. D. Calculate the budgeted direct labour cost for January. E. Calculate the budgeted direct labour cost for February. F. Calculate the budgeted variable manufacturing overhead for March. G. Calculate the budgeted total manufacturing overhead for March.

BacSac Company makes backpacks. Its production budget for two months is: Month Budgeted production in units June 35,000 July 50,000 The company uses two types of labour to make the backpacks: cutting labour and sewing labour. Each backpack requires 6 minutes, on average, of cutting labour. Each backpack requires 24 minutes of sewing labour. The company has fixed manufacturing overhead of $4,400 per month and variable manufacturing overhead of $3 per direct labour hour. Required: A. Calculate the budgeted number of hours of cutting labour for July. B. Calculate the budgeted number of hours of sewing labour for July. C. Calculate the total number of budgeted direct labour hours for July. D. Calcualte the budgeted total manufacturing overhead for the month of July.