ACCT 101B - Chapter 22

The production budget is used to prepare which of the following budgets?

direct materials purchases, direct labor cost, and factory overhead cost

If budgeted beginning finished goods inventory is $8,000, budgeted ending finished goods inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted cost of goods manufactured should be

$11,660

As of January 1 of the current year, Grayson Company had accounts receivable of $40,000... The total cash collected (both from accounts receivable and for cash sales) in the month of January is

$121,600

As of January 1 of the current year, Grackle Company had accounts receivable of $50,000... The total cash collected (both from accounts receivable and cash sales) in the month of March is

$146,800

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: The cash payments for Finch Company expected in the month of June are

$212,000

Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units... The dollar amount of Material A used in production during the year is

$217,700

For February, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $96,000... Total selling expenses for the month of February are

$241,000

Tara Company's budget shows the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000... The amount of cash Tara Company will expect to collect in November as a result of current and past credit sales is

$31,100

Dove Corporation began its operations on September 1 of the current year... The cash collections in November are

$389,750

Consider Derek's budget information: Materials to be used total $64,750... The budgeted cost of goods manufactured for the year is

$649,450

Below is budgeted production and sales information for Flushing Company for the month of December... Budgeted sales for the month is

$8,500,000

Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000... The January cash collections from sales are

$984,000

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. The number of units produced in February should be

1,940 units

Cardinal Company has finished goods inventory of 55,000 units on January 1... The budgeted units of production for January would be

181,000 units

Production and sales estimates for May for Cardinal Co. are as follows: The number of units expected to be sold in May is

21,000 units

If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is

7,000 units

Southern Company is preparing a cash budget for April. The company has $12,000 cash at the beginning of April... To maintain the required balance during April, the company must

borrow $2,500

A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed _____ budgeting.

continuous

Laurie Inc.'s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $25,000. A flexible budget for 12,000 units of production would show

direct materials of $72,000, direct labor of $52,800, fixed utilities of $5,000, and supervisor salaries of $25,000

A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided: The amount of the deficiency or excess cash (after considering the minimum cash balance required) for January is a(n)

excess of $26,700

Which of the following budgets allows for adjustments in activity levels?

flexible budget

The process of developing budget estimates by requiring managers to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as _____ budgeting.

zero-based