Question 1

After the sales budget is prepared,the capital expenditures budget is normally prepared next.

Accepted Answer

A) True 
 B)False

Question 2

Stephanie Corporation sells a single product.Budgeted sales for the year are anticipated to be 640,000 units,estimated beginning inventory is 108,000 units,and desired ending inventory is 90,000 units.The quantities of direct materials expected to be used for each unit of finished product are given below. ​
Material A 0.50 lb.per unit @ $0.70 per pound
Material B 1.00 lb.per unit @ $1.70 per pound
Material C 1.20 lb.per unit @ $1.00 per pound
​
The dollar amount of material A used in production during the year is

Accepted Answer

A)  $217,700 
B)  $528,700 
C)  $311,000 
D)  $224,600 
A)  $217,700 
B)  $528,700 
C)  $311,000 
D)  $224,600

Question 3

Prepare a monthly flexible selling expense budget for Cottonwood Company for sales volumes of $300,000,$350,000,and $400,000,based on the following data

Accepted Answer

The answer of Prepare a monthly flexible selling expense budget...

Question 4

What is the budgeted units of inventory for March 31?

Accepted Answer

A)  46,000 
B)  36,000 
C)  cannot be determined from the data given 
D)  42,000 
A)  46,000 
B)  36,000 
C)  cannot be determined from the data given 
D)  42,000

Question 5

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

Accepted Answer

A)  $746,400 
B)  $724,800 
C)  $824,400 
D)  $758,160 
A)  $746,400 
B)  $724,800 
C)  $824,400 
D)  $758,160

Question 6

Describe a master budget and the sequence in which the individual budgets within the master budget are prepared.

Accepted Answer

The master budget is a comprehensive pla

Question 7

Estimated cash payments are planned reductions in cash from all of the following except

Accepted Answer

A)  manufacturing and operating expenses 
B)  capital expenditures 
C)  notes and accounts receivable collections 
D)  payments for interest or dividends 
A)  manufacturing and operating expenses 
B)  capital expenditures 
C)  notes and accounts receivable collections 
D)  payments for interest or dividends

Question 8

A disadvantage of static budgets is that they

Accepted Answer

A)  are dependent on previous year's actual results 
B)  cannot be used by service companies 
C)  do not show possible changes in underlying activity levels 
D)  show the expected results of a responsibility center for several levels of activity 
A)  are dependent on previous year's actual results 
B)  cannot be used by service companies 
C)  do not show possible changes in underlying activity levels 
D)  show the expected results of a responsibility center for several levels of activity

Question 9

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods,$765,000; December 31 finished goods,$540,000; and cost of goods sold for the year,$2,560,000.The budgeted costs of goods manufactured for the year is

Accepted Answer

A)  $1,255,000 
B)  $2,335,000 
C)  $2,785,000 
D)  $3,100,000 
A)  $1,255,000 
B)  $2,335,000 
C)  $2,785,000 
D)  $3,100,000

Question 10

The cash payments expected for Finch Company in the month of April are

Accepted Answer

A)  $122,600 
B)  $120,600 
C)  $123,100 
D)  $121,100 
A)  $122,600 
B)  $120,600 
C)  $123,100 
D)  $121,100

Question 11

The Tough Jeans Company produces two different styles of jeans,Working Life and Social Life.The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year.The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life.The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life.Prepare a production budget for the year.

Accepted Answer

The answer of The Tough Jeans Company produces two different...

Question 12

The budget that summarizes future plans for the acquisition of fixed assets is

Accepted Answer

A)  direct materials purchases budget 
B)  production budget 
C)  sales budget 
D)  capital expenditures budget 
A)  direct materials purchases budget 
B)  production budget 
C)  sales budget 
D)  capital expenditures budget

Question 13

Production and sales estimates for March for the Robin Co.are as follows: ​
  ​
The number of units expected to be manufactured in March is

Accepted Answer

A)  24,000 
B)  27,000 
C)  27,600 
D)  21,600 
A)  24,000 
B)  27,000 
C)  27,600 
D)  21,600

Question 14

Production and sales estimates for April are as follows: ​
  ​
The number of units expected to be manufactured in April is

Accepted Answer

A)  11,000 
B)  9,500 
C)  12,000 
D)  13,000 
A)  11,000 
B)  9,500 
C)  12,000 
D)  13,000

Question 15

Diamond Company manufactures two models of cassette recorders,VCH and MTV.Based on the following production data for April,prepare a production budget.

Accepted Answer

The answer of Diamond Company manufactures two models of cassette...

Question 16

Flanders Industries collects 35% of its sales on account in the month of the sale,and 65% in the month following the sale.Sales on account are budgeted to be $175,000 for May and $225,000 for June.What are the budgeted cash receipts from sales on account for June?

Accepted Answer

The answer of Flanders Industries collects 35% of its sales...

Question 17

The master budget is an integrated set of budgets that tie together a company's operating,financing and investing activities into an integrated plan for the coming year.

Accepted Answer

A) True 
 B)False

Question 18

The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

Accepted Answer

A)  control center 
B)  budgetary area 
C)  responsibility center 
D)  managerial department 
A)  control center 
B)  budgetary area 
C)  responsibility center 
D)  managerial department

Question 19

When preparing the cash budget,all the following should be considered except

Accepted Answer

A)  cash receipts from customers 
B)  depreciation expense 
C)  cash payments to suppliers 
D)  cash payments for equipment 
A)  cash receipts from customers 
B)  depreciation expense 
C)  cash payments to suppliers 
D)  cash payments for equipment

Question 20

The number of pounds of materials A and B required for July production is

Accepted Answer

A)  216,000 lbs.of A; 36,000 lbs.of B 
B)  216,000 lbs.of A; 72,000 lbs.of B 
C)  234,000 lbs.of A; 39,000 lbs.of B 
D)  225,000 lbs.of A; 37,500 lbs.of B 
A)  216,000 lbs.of A; 36,000 lbs.of B 
B)  216,000 lbs.of A; 72,000 lbs.of B 
C)  234,000 lbs.of A; 39,000 lbs.of B 
D)  225,000 lbs.of A; 37,500 lbs.of B

Exam 21: Budgeting

After the sales budget is prepared,the capital expenditures budget is normally prepared next.

Prepare a monthly flexible selling expense budget for Cottonwood Company for sales volumes of $300,000,$350,000,and $400,000,based on the following data

What is the budgeted units of inventory for March 31?

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

Describe a master budget and the sequence in which the individual budgets within the master budget are prepared.

Estimated cash payments are planned reductions in cash from all of the following except

A disadvantage of static budgets is that they

The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods,$765,000; December 31 finished goods,$540,000; and cost of goods sold for the year,$2,560,000.The budgeted costs of goods manufactured for the year is

The cash payments expected for Finch Company in the month of April are

The budget that summarizes future plans for the acquisition of fixed assets is

Production and sales estimates for March for the Robin Co.are as follows: ​ ​ The number of units expected to be manufactured in March is

Production and sales estimates for April are as follows: ​ ​ The number of units expected to be manufactured in April is

Diamond Company manufactures two models of cassette recorders,VCH and MTV.Based on the following production data for April,prepare a production budget.

Flanders Industries collects 35% of its sales on account in the month of the sale,and 65% in the month following the sale.Sales on account are budgeted to be $175,000 for May and $225,000 for June.What are the budgeted cash receipts from sales on account for June?

The master budget is an integrated set of budgets that tie together a company's operating,financing and investing activities into an integrated plan for the coming year.

The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

When preparing the cash budget,all the following should be considered except

The number of pounds of materials A and B required for July production is

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Production and sales estimates for March for the Robin Co.are as follows: The number of units expected to be manufactured in March is

Production and sales estimates for April are as follows: The number of units expected to be manufactured in April is