Question 1

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.

Accepted Answer

The answer of Purple Co.'s production budget for Product X...

Question 2

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

Accepted Answer

A) $217,100 
B) $205,000 
C) $207,100 
D) $142,100

Question 3

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.

Accepted Answer

The answer of Good Eats Inc.manufactures flatware sets.The budgeted production...

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) $159,100 
B) $242,600 
C) $186,000 
D) $182,100

Question 8

The cash collections in November are

Accepted Answer

A) $317,750 
B) $389,750 
C) $490,000 
D) $410,000

Question 9

What is the budgeted unit of production for January?

Accepted Answer

A) 236,000 
B) 181,000 
C) 200,000 
D) 219,000

Question 10

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

Accepted Answer

A) $1,057,400 
B) $1,193,400 
C) $1,026,800 
D) $1,224,000

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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.

Accepted Answer

The answer of Based on the following production and sales...

Question 15

Budgeted production for product ZZZ during the month is

Accepted Answer

A) 460,000 units 
B) 475,000 units 
C) 457,000 units 
D) 463,000 units

Question 16

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.

Accepted Answer

The answer of Doran Technologies produces a single product.Expected manufacturing...

Question 17

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

Accepted Answer

A) planning 
B) directing 
C) controlling 
D) budget slack 
E) goal conflict

Question 18

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.

Accepted Answer

The answer of Sleep Tight manufactures comforters.The estimated inventories on...

Question 19

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

Accepted Answer

A) variable costs of $52,800 and $29,000 of fixed costs 
B) variable costs of $44,000 and $24,000 of fixed costs 
C) variable costs of $52,800 and $24,000 of fixed costs 
D) variable and fixed costs totaling $68,000

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 6: Budgeting

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.

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.

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

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

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.