ACC 202 - Chapter 9 (MIDTERM)
The ending finished goods inventory budget supplies information needed for the a. sales budget. b. cash budget. c. budgeted income statement. d. cost of goods sold budget. e. all of these
D
What is the formula used to compute the units to be produced? a. Units produced = Units sold b. Units produced = Units sold + Units in beginning inventory + Units in ending inventory c. Units produced = Units sold + Units in beginning inventory - Units in ending inventory d. Units Produced = Units sold - Units in beginning inventory + Units in ending inventory
D
Belant Company budgeted 200,000 units of production for June, 210,000 units for July and 250,000 units for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August? a. 50,000 b. 5,000 c. 75,000 d. 52,500 e. 62,500
E
Budgets are a. key components of planning. b. financial plans for the future. c. an identifier of objectives and the actions needed to achieve them. d. used for communication and coordination. e. all of these.
E
Sully Company provided the following information for last month. Production in units 3,000 Direct materials cost $8,000 Direct labor cost $10,000 Overhead cost $12,000 Sales commission per unit sold $ 4 Price per unit sold $29 Fixed selling and administrative expense $7,000 There were no beginning and ending inventories. Refer to Figure 9-5. What is operating income for Sully Company for last month? a. $24,000 b. $34,600 c. $49,400 d. $41,400 e. $38,000
E
Sully Company provided the following information for last month. Production in units 3,000 Direct materials cost $8,000 Direct labor cost $12,000 Overhead cost $10,000 Sales commission per unit sold $ 4 Price per unit sold $29 Fixed selling and administrative expense $7,000 There were no beginning and ending inventories. Refer to Figure 9-5. What is gross margin for Sully Company last month? a. $54,000 b. $64,600 c. $32,400 d. $60,400 e. $57,000
E
Which of the following budgets are needed to calculate a budgeted unit cost? a. Direct materials purchases budget b. Direct labor budget c. Overhead budget d. Direct materials purchases budget and overhead budget e. Direct materials purchases budget, direct labor budget, and overhead budget
E
Which of the following statements is true? a. The overhead budget is typically composed of variable overhead and fixed overhead. b. The direct labor budget uses an average wage rate for direct labor. c. The production budget is not converted into dollars. d. The sales budget includes both units and dollars. e. All of these.
E
A large difference between actual and planned results is feedback that the system is providing adequate control. True or False
False
The direct materials purchases budget is based on the sales budget. True or False
False
The master budget is typically a comprehensive financial plan for the organization for the past fiscal year. True or False
False
The production budget is prepared in units and in dollars. True or False
False
A continuous budget is a moving 12-month budget. True or False
True
A firm acquires information that can be used to improve decision making from a budgetary system. True or False
True
Budgets identify objectives and the actions needed to achieve them because they are foresighted financial plans. True or False
True
Comparing actual results with budgeted results on a periodic basis provides control in a budgetary system. True or False
True
Control is achieved by comparing actual results with budgeted results on a periodic basis. True or False
True
Ideally, managers are held accountable for controllable costs. True or False
True
The cash budget includes the beginning balance of cash, cash receipts, cash disbursements, and the ending balance of cash. True or False
True
The direct labor budget includes: units to be produced, direct labor time needed per unit, and total direct labor cost for the period. True or False
True
The master budget is composed of operating budgets and financial budgets. True or False
True
The selling and administrative expenses budget is part of the operating budgets. True or False
True
A company expects the following sales for the coming year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units 20,000 50,000 80,000 90,000 Price $4 $4 $4 $5 Budgeted sales revenue for the year is a. $1,050,000 b. $1,260,000 c. $1,155,000 d. $1,130,000 e. it is impossible to tell from this information
A
Direct materials needed for production is calculated by a. multiplying units to be produced by direct materials per unit. b. subtracting units to be produced from direct materials per unit. c. dividing units to be produced by direct materials per unit. d. adding units to be produced to direct materials per unit. e. subtracting direct materials per unit from units to be produced.
A
Looking backward to determine what actually happened and comparing it with the previously planned outcomes is a. control. b. communicating. c. decision making. d. strategic planning. e. budgeting.
A
Rodriquez Company budgeted the following sales in units: January 30,000 February 40,000 March 50,000 Rodriquez's policy is to have 20% of the following month's sales in inventory. On January 1, inventory equaled 7,500 units. February production in units is a. 20,000. b. 42,000. c. 40,000. d. 30,500. e. 24,000.
B
Sully Company provided the following information for last month. Production in units 3,000 Direct materials cost $8,000 Direct labor cost $12,000 Overhead cost $10,000 Sales commission per unit sold $ 4 Price per unit sold $29 Fixed selling and administrative expense $7,000 There were no beginning and ending inventories. Refer to Figure 9-5. What is Sully's cost of goods sold per unit under absorption costing? a. $12.60 b. $10.00 c. $ 8.87 d. $12.50 e. $16.60
B
The master budget is a. the selective financial plan for the organization as a whole. b. typically for a 1-year period corresponding to the fiscal year of the company. c. broken down into daily and weekly budgets. d. used for misinformation and coordination. e. all of these.
B
