ACCT 212 Read & Interact Wild & Shaw Chapter 7 Master Budgets solutions complete answers

ACCT 212 Read & Interact Wild & Shaw Chapter 7 Master Budgets solutions complete answers 

 

A manufacturing company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. The company expects 70% of the sales to be on credit and the remainder to be cash sales. Credit sales are collected in the month following the sale. The total cash collected during March will be $ .

 

A manufacturing company's sales budget indicates the following sales: January: $30,000; February: $20,000; March: $15,000. The company expects 80% of the sales to be on credit. Credit sales are collected 30% in the month of the sale and 70% in the month following the sale. The total cash receipts collected during March will be $ .

 

A manufacturing company has budgeted direct labor hours of 940 at a budgeted direct labor hour rate of $15. The budgeted fixed cost is $950 per month. The total budgeted overhead cost will be $ _.

 

The formula to compute the units to purchase in a merchandise purchases budget is:

 

The formula to compute the budgeted direct labor cost for a service firm is:

 

The budget which shows predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period is the:

 

To calculate the units to purchase in a merchandise purchases budget, the formula is:

 

A manufacturing company's sales budget indicates the following sales: January: $30,000; February: $20,000; March: $15,000. The company expects 80% of the sales to be on account. Credit sales are collected 30% in the month of the sale and 70% in the month following the sale. The total cash receipts collected during March will be $ .

 

JP Service Company has budgeted direct labor hours of 100 and direct labor cost per hour of $25 for data analysis personnel and budgeted direct labor hours of 50 and direct labor cost per hour of $30 for staff accountants.  JP Service Company's cost of direct labor is $ _?

 

The reporting of expected cash receipts and cash payments related to the sale and purchase of plant assets is reported on the   expenditures budget.

 

Match each figure on the budgeted balance sheet to the previously prepared budget from which the figure is derived.

 

True or false: Depreciation on non-manufacturing assets and property taxes are considered general and administrative expenses and, therefore, are included on the general and administrative expense budget.

 

A manufacturing company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. The company expects 70% of the sales to be on account and the remainder to be cash sales. Credit sales are collected in the month following the sale. The total cash collected during March will be $ .

 

Direct materials are $15 per unit; direct labor is $7 per unit and variable overhead costs are $2 per unit. If total product costs are $27, what are fixed costs per unit?

 

A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salaries: $1,250; Sales commissions: 5% of sales; Advertising: $10,000; Depreciation on store equipment: $25,000; Rent on administrative building: $30,000; Miscellaneous administrative expenses: $5,000. The total general and administrative expenses on the January general and administrative expense budget will be $ .

 

A manufacturing company has budgeted direct labor hours of 600 at a variable overhead rate per direct labor hour of $20. The budgeted fixed cost is $500 per month. The total budgeted overhead cost will be $ _.

 

If direct materials per unit are $20, direct labor per unit is $10, variable overhead per unit is $2, and fixed overhead per unit is $1, total product cost per unit is $ .

 

The formula to compute the budgeted direct labor cost is

 

A manufacturing company has budgeted production of 5,000 units for May and 4,400 units in June. Each unit requires 3 pounds of materials at a cost of $10 per pound. On May 1, there are 2,750 pounds of materials on hand. The company desires an ending materials inventory of 60% of the next month's materials requirements. The total cost of direct materials purchases for May will be $ .

 

A company's sales budget indicates the following sales: January: 25,000; February: 30,000; March: 35,000. Beginning inventory is 12,000 units and the company desires ending inventory of 45% of the next month's sales. Units to be produced in January will be  .

 

A manufacturing company has budgeted direct labor hours of 940 at a direct labor hour rate of $15. The budgeted fixed cost is $950 per month. The total budgeted overhead cost will be $ _.

 

A company expects to sell 400 units of Product X in January and expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be $ .

 

A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The cost of direct labor is $15 per hour. The total cost of direct labor for the month will be $ .

 

The formula to determine the materials to be purchased is

 

A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units in beginning inventory. If they desire ending inventory of 10% of the next quarter's sales,   units will need to be produced in the second quarter.

 

Budgeting guidelines that help insure budgeting is a positive motivating force include: (Check all that apply.)

 

To   is to use the control function to evaluate business operations against some norm.

 

A(n)   is a formal statement of a company's plans in dollars.

 

All of the following are guidelines that should be followed for budgets to be a positive motivating force except:

 

Budgeted performance considers all of the following in relation to a benchmark: (Select all that apply).

 

The formula to compute the merchandise inventory to be purchased is

 

Activity-based budgeting is a budget system based on expected       .

 

Which of the following items would be included on the capital expenditures budget? (Check all that apply.)

 

All of the following are operating budgets except:

 

A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales personnel are paid a salary plus commission. Salaries are expected to be $5,000 per month and the commission is 10% of sales. Additionally, advertising is expected to be $600 per month. The total selling expenses for the quarter will be $      .

 

A manufacturing company would typically prepare all of the following budgets except:

 

All of the following are guidelines for budgeting except:

 

A merchandising company's budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salaries: $1,250; Sales commissions: 5% of sales; Advertising: $10,000; Salary for sales manager: $30,000; Miscellaneous administrative expenses: $5,000. The total selling expenses on the January selling expense budget will be $      .

 

A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the budgeted net income will be $      .

 

A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the amount of budgeted income tax expense will be $      . 

 

A(n)        is a formal statement of a company's plans, usually expressed in monetary terms.

 

To calculate the inventory to be purchased in a merchandise purchases budget, the formula is:

 

A manufacturer's operating budgets consists of the: (Check all that apply.)

 

A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales,        units will need to be produced in the second quarter. 

 

Match each budget item for a production department to either an activity-based budget or a traditional budget.

 

A merchandising company's sales budget indicates the following sales: January: $30,000; February: $20,000; March: $15,000. The company expects 80% of the sales to be on account. Credit sales are collected 30% in the month of the sale and 70% in the month following the sale. The total cash receipts collected during March will be $      .

 

Characteristics of budgets include: (Check all that apply.)

 

A company has the following loan activity—Additional loan from bank: $19,000; Ending cash balance: $5,600. The preliminary cash balance is:

 

List the individual budgets of the master budget in the order in which they are prepared, with the first on top.

 

Budgeting process guidelines include: (Check all that apply.)

 

A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be $      .

 

Most companies prepare a(n) ______ budget that is separated into ______ budgets.

 

The process of evaluating and planning for plant asset expenditures is called        expenditures budgeting.

 

The primary purpose of using short-term budgets is to:

 

A company has the following budgeted information: Cash receipts: $542,000; Beginning cash balance: $10,000; Cash payments (including interest payments): $560,000; Outstanding loan balance: $100,000; Desired ending cash balance: $50,000. In order to maintain the desired cash balance, the company will need to:

 

A company's sales budget indicates the following sales: January: 25,000; February: 30,000; March: 35,000. Beginning inventory is 12,000 and the company's ratio of inventory to future sales is estimated at 45%. Units to be produced in January will be       .

 

A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. The company expects 70% of the sales to be on account and the remainder to be cash sales. Credit sales are collected in the month following the sale. The total cash collected during March will be $      .

 

The first step in preparing the master budget is planning the        budget.