Question 1

Which of the following statements regarding the manufacturing overhead budget is incorrect?

Accepted Answer

A) Both fixed and variable manufacturing overhead costs are budgeted. 
B) The manufacturing overhead budget calculates the budgeted overhead costs for the year and also the predetermined overhead allocation rate for the year. 
C) The cost accountant and the production manager work together to project variable and fixed manufacturing costs. 
D) Depreciation on manufacturing equipment is not included because the production manager has no control over that cost allocation. 
A) Both fixed and variable manufacturing overhead costs are budgeted. 
B) The manufacturing overhead budget calculates the budgeted overhead costs for the year and also the predetermined overhead allocation rate for the year. 
C) The cost accountant and the production manager work together to project variable and fixed manufacturing costs. 
D) Depreciation on manufacturing equipment is not included because the production manager has no control over that cost allocation.

Question 2

What is the cornerstone of the master budget for a merchandising company? Why?

Accepted Answer

The sales budget is the corner

Question 3

List the four budgeting objectives.Why is this process a loop?

Accepted Answer

The four budgeting objectives are (1)dev

Question 4

On June 30,Alpha Company's cash balance is $4,000.Alpha is now preparing their cash budget for the third quarter of the year.The following data is provided:
 
The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.

Accepted Answer

A) $6,958 
B) $55,758 
C) $6,654 
D) $21,654 
A) $6,958 
B) $55,758 
C) $6,654 
D) $21,654

Question 5

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Accounts Payable can be taken from the ________.

Accepted Answer

A) inventory,purchases,and cost of goods sold budget 
B) schedule of cash payments 
C) direct materials budget 
D) selling and administrative expenses budget 
A) inventory,purchases,and cost of goods sold budget 
B) schedule of cash payments 
C) direct materials budget 
D) selling and administrative expenses budget

Question 6

List and describe the three types of budgets that are included in the master budget.

Accepted Answer

1.Operating budget - The set of budgets

Question 7

Fly GenX,Inc.has the following budgeted sales for the next quarter.
   
Inventory of finished goods on hand at the beginning of the quarter is 4,000 units.The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month.
Calculate the quantity to be produced during the quarter.

Accepted Answer

Calculation of budgeted produc

Question 8

Mealer,Inc.has prepared its third quarter budget and provided the following data:
 
The cash balance on June 30 is projected to be $4,100.The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%.All financing transactions are assumed to take place at the end of the month.The loan balance should be repaid in increments of $5,000 whenever there is surplus cash.Calculate the final projected cash balance at the end of September.

Accepted Answer

A) $21,884 
B) $6,884 
C) $9,467 
D) $55,667 
A) $21,884 
B) $6,884 
C) $9,467 
D) $55,667

Question 9

A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company.

Accepted Answer

A) True 
 B)False

Question 10

Health Resources expects to sell 480 units of Product A and 440 units of Product B each day at an average price of $19 for Product A and $32 for Product B.The expected cost for Product A is 40% of its selling price and the expected cost for Product B is 62% of its selling price.Health Resources has no beginning inventory,but it wants to have a six-day supply of ending inventory for each product.Compute the company's budgeted sales for the next (seven-day)week.(Round the answer to the nearest dollar. )

Accepted Answer

A) $12,378 
B) $139,200 
C) $162,400 
D) $23,200 
A) $12,378 
B) $139,200 
C) $162,400 
D) $23,200

Question 11

McIntyre,Inc.has prepared its third quarter budget and provided the following data:
 
The cash balance on June 30 is projected to be $4,300.The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%.All financing transactions are assumed to take place at the end of the month.The loan balance should be repaid in increments of $5,000 whenever there is surplus cash.Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions.

Accepted Answer

A) $9,167 
B) $(5,833) 
C) $48,800 
D) $15,000 
A) $9,167 
B) $(5,833) 
C) $48,800 
D) $15,000

Question 12

Kapital,Inc.has prepared the operating budget for the first quarter of the year.The company forecast sales of $50,000 in January,$60,000 in February,and $70,000 in March.Variable and fixed selling and administrative expenses are as follows:
Variable Expenses: Power cost (30% of sales)
Miscellaneous expenses: (10% of sales)
Fixed Expenses: Salary expense: $6,000 per month
Salaries expense: $4,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Calculate total selling and administrative expenses for the month of January.

Accepted Answer

A) $33,200 
B) $41,200 
C) $20,000 
D) $37,200 
A) $33,200 
B) $41,200 
C) $20,000 
D) $37,200

Question 13

The inventory costing method affects the process of preparing the cost of goods sold budget.

Accepted Answer

A) True 
 B)False

Question 14

Cost behavior is considered in developing the selling and administrative expense budget as costs are designated as variable or fixed.

Accepted Answer

A) True 
 B)False

Question 15

From the following details provided by Barry,Inc. ,prepare the cost of goods sold budget for the year.

Barry,Inc.expects no inventory units at the end of the second,third and fourth quarters.

Accepted Answer

@#IMG-DLM& 
 @#IMG-DLM& 
Units produced and sold i

Question 16

The following details have been extracted from the budget of a merchandising company.

Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month.
Rent and miscellaneous expenses are paid as and when they occur.Insurance is prepaid at the beginning of the quarter.Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.

Accepted Answer

A) $25,600 
B) $49,800 
C) $75,400 
D) $27,900 
A) $25,600 
B) $49,800 
C) $75,400 
D) $27,900

Question 17

Projected manufacturing cost per unit of product sold does not include ________ cost per unit.

Accepted Answer

A) sales commission 
B) direct materials 
C) variable manufacturing overhead 
D) direct labor 
A) sales commission 
B) direct materials 
C) variable manufacturing overhead 
D) direct labor

Question 18

From the following details,provided by a merchandising company,prepare the selling and administrative expenses budget for the first quarter of the next year.

Accepted Answer

The answer of From the following details,provided by a merchandising...

Question 19

Budgeted purchases of direct materials is determined by adding direct materials needed for production to the desired direct materials in ending inventory.

Accepted Answer

A) True 
 B)False

Question 20

Budgets provide a benchmark that motivates employees and helps managers evaluate performance.

Accepted Answer

A) True 
 B)False

Which of the following statements regarding the manufacturing overhead budget is incorrect?

What is the cornerstone of the master budget for a merchandising company? Why?

List the four budgeting objectives.Why is this process a loop?

On June 30,Alpha Company's cash balance is $4,000.Alpha is now preparing their cash budget for the third quarter of the year.The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Accounts Payable can be taken from the ________.

List and describe the three types of budgets that are included in the master budget.

A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company.

The inventory costing method affects the process of preparing the cost of goods sold budget.

Cost behavior is considered in developing the selling and administrative expense budget as costs are designated as variable or fixed.

From the following details provided by Barry,Inc. ,prepare the cost of goods sold budget for the year. Barry,Inc.expects no inventory units at the end of the second,third and fourth quarters.

Projected manufacturing cost per unit of product sold does not include ________ cost per unit.

From the following details,provided by a merchandising company,prepare the selling and administrative expenses budget for the first quarter of the next year.

Budgeted purchases of direct materials is determined by adding direct materials needed for production to the desired direct materials in ending inventory.

Budgets provide a benchmark that motivates employees and helps managers evaluate performance.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 22: Master Budgets

Which of the following statements regarding the manufacturing overhead budget is incorrect?

What is the cornerstone of the master budget for a merchandising company? Why?

List the four budgeting objectives.Why is this process a loop?

On June 30,Alpha Company's cash balance is $4,000.Alpha is now preparing their cash budget for the third quarter of the year.The following data is provided: The amount of cash that should be shown in the budgeted balance sheet as of September 30 would be ________.

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.The balance of Accounts Payable can be taken from the ________.

List and describe the three types of budgets that are included in the master budget.

A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company.

The inventory costing method affects the process of preparing the cost of goods sold budget.

Cost behavior is considered in developing the selling and administrative expense budget as costs are designated as variable or fixed.

From the following details provided by Barry,Inc. ,prepare the cost of goods sold budget for the year. Barry,Inc.expects no inventory units at the end of the second,third and fourth quarters.

Projected manufacturing cost per unit of product sold does not include ________ cost per unit.

From the following details,provided by a merchandising company,prepare the selling and administrative expenses budget for the first quarter of the next year.

Budgeted purchases of direct materials is determined by adding direct materials needed for production to the desired direct materials in ending inventory.

Budgets provide a benchmark that motivates employees and helps managers evaluate performance.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters