FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Budgeting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are:

A) $812,000
B) $688,000
C) $468,000
D) $984,000

E) All of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 72

True/False

Review LaterAdd Note

Review Later

The master budget of a small manufacturer would normally include all component budgets that impact on the financial statements.

A) True
B) False

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Principal components of a master budget include which of the following?

The cash budget is affected by the sales budget, the various budgets for manufacturing costs and operating expenses, and the capital expenditures budget.

A department store has budgeted sales of 12,000 men's suits in September. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 units. What is the dollar amount of the purchase of suits? Each suit has a cost of $75.

Employees view budgeting more positively when goals are established for them by senior management.

The production budgets are used to prepare which of the following budgets.

A sporting goods store purchased $7,000 of ski boots in October. The store had $3,000 of ski boots in inventory at the beginning of October, and expects to have $2,000 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?

A formal written statement of management's plans for the future, expressed in financial terms, is a:

The treasurer of Systems Company has accumulated the following budget information for the first two months of the coming year:

Budgets are prepared in the Accounting Department and monitored by various department managers.

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

For January, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; 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 January are:

Production estimates for July are as follows: For each unit produced, the direct materials requirements are as follows: The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is:

As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each month's sales are for cash. Of the remaining 80% (the credit sales) , 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:

The budgeted direct materials purchases is based on the sum of (1) the materials needed for production and (2) the desired ending materials inventory, less (3) the estimated beginning materials inventory.

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is:

Match the following terms with the best definition given.

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