Question 1

Below is budgeted production and sales information for Flushing Company for the month of December:  The unit selling price for product XXX is $5 and for product ZZZ is $15.
-Budgeted production for product XXX during the month is

Accepted Answer

A)  498,000 units 
B)  502,000 units 
C)  534,000 units 
D)  566,000 units

Question 2

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget:

Accepted Answer

The answer of Prepare a flexible budget for Cedar Jeans...

Question 5

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

Accepted Answer

A)  direct materials purchases budget 
B)  cash budget 
C)  production budget 
D)  sales budget

Question 6

Match each phrase that follows with the term a-f) it describes..
-a plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans

Accepted Answer

A) budget 
B) capital expenditures budget 
C) sales budget 
D) production budget 
E) cash budget
F)budgeted balance sheet

Question 7

As of January 1 of the current year, the Gunner Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the accounts receivable balance as of March 31?

Accepted Answer

A)  $72,000 
B)  $48,000 
C)  $58,720 
D)  $60,000

Question 8

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:  1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.
2) Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter, i.e., January, April, July, and October).
3) Property tax is paid once a year in November.
-The cash payments expected for Finch Company in the month of May are

Accepted Answer

A)  $185,600 
B)  $149,900 
C)  $187,600 
D)  $189,100

Question 9

The cash budget presents the expected inflow and outflow of cash for a specified period of time.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  borrow $4,500 
B)  borrow $2,500 
C)  borrow $7,500 
D)  borrow $5,000

Question 11

-What is the budgeted unit of production for February?

Accepted Answer

A)  186,000 
B)  181,000 
C)  222,000 
D)  174,000

Question 12

Budgeted production of Product B for the year would be

Accepted Answer

A)  24,500 units 
B)  22,500 units 
C)  26,500 units 
D)  23,200 units

Question 13

Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production in units) for the year?

Accepted Answer

A)  78,500 
B)  70,000 
C)  77,500 
D)  70,500

Question 14

The benefits of comparing actual performance of the operations against planned goals include all of the following except

Accepted Answer

A)  providing prompt feedback to employees about their performance relative to the goal 
B)  preventing unplanned expenditures 
C)  helping to establish spending priorities 
D)  determining how managers are performing against prior years' actual operating results

Question 15

The cash collections expected in October are

Accepted Answer

A)  $320,000 
B)  $248,000 
C)  $304,250 
D)  $382,500

Question 16

The budget procedures used by a large manufacturer of automobiles would probably not differ from those used by a small manufacturer of paper products.

Accepted Answer

A) True 
 B)False

Question 17

Truliant Co. sells a product called Withitall and has predicted the following sales for the first four months of the current year:  Ending inventory for each month should be 20% of next month's sales. How many units should be produced in February?

Accepted Answer

A)  1,940 
B)  1,800 
C)  1,900 
D)  1,850

Exam 21: Budgeting

Below is budgeted production and sales information for Flushing Company for the month of December: The unit selling price for product XXX is $5 and for product ZZZ is $15. -Budgeted production for product XXX during the month is

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

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

Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following is additional information necessary to complete the budget:

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

Match each phrase that follows with the term a-f) it describes.. -a plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans

The cash budget presents the expected inflow and outflow of cash for a specified period of time.

-What is the budgeted unit of production for February?

Budgeted production of Product B for the year would be

Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production in units) for the year?

The benefits of comparing actual performance of the operations against planned goals include all of the following except

The cash collections expected in October are

The budget procedures used by a large manufacturer of automobiles would probably not differ from those used by a small manufacturer of paper products.

Truliant Co. sells a product called Withitall and has predicted the following sales for the first four months of the current year: Ending inventory for each month should be 20% of next month's sales. How many units should be produced in February?