Chapter 9 acc 241

Question content area top Part 1 Wise Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $35,000. Budgeted cash disbursements are $128,000​, while budgeted cash receipts are $128,000. Wise Company wants to have an ending cash balance of $45,000. How much would Wise Company need to borrow to achieve its desired ending cash​ balance?

10,000

Question content area top Part 1 Wise Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $35,000. Budgeted cash disbursements are $126,000​, while budgeted cash receipts are $130,000. Wise Company wants to have an ending cash balance of $50,000. How much would Wise Company need to borrow to achieve its desired ending cash​ balance?

11,000

Rest Easy Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Rest Easy Corporation has a direct labor rate of $16 per direct labor hour. The production budget shows that the company plans to produce 1,200 end tables in March and 700 end tables in April. What is the total combined direct labor cost that Rest Easy Corporation should budget in March and​ April?

15200

Rest Easy Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Rest Easy Corporation has a direct labor rate of $20 per direct labor hour. The production budget shows that the company plans to produce 900 end tables in March and 1,100 end tables in April. What is the total combined direct labor cost that Rest Easy Corporation should budget in March and​ April?

20,000

Slick Company produces jump ropes. Slick Company has the following sales projections for the upcoming​ year: First quarter budgeted jump rope sales in units 18,000 Second quarter budgeted jump rope sales in units 45,000 Third quarter budgeted jump rope sales in units 20,000 Fourth quarter budgeted jump rope sales in units 31,000 Inventory at the beginning of the year was 4,200 jump ropes. Slick Company wants to have 20​% of the next​ quarter's sales in units on hand at the end of each quarter. How many jump ropes should Slick Company produce during the first​ quarter?

22800

Slick Company produces jump ropes. Slick Company has the following sales projections for the upcoming​ year: First quarter budgeted jump rope sales in units 20,000 Second quarter budgeted jump rope sales in units 70,000 Third quarter budgeted jump rope sales in units 19,000 Fourth quarter budgeted jump rope sales in units 34,000 Inventory at the beginning of the year was 3,500 jump ropes. Slick Company wants to have 10​% of the next​ quarter's sales in units on hand at the end of each quarter. How many jump ropes should Slick Company produce during the first​ quarter?

23500

Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master​ budget: Operating Expenses Variable Operating Costs ​$1.25 per unit sold Fixed Operating Costs ​$234,000 Other​ Info: Units produced in 2020 ​47,000 Units sold in 2020 ​44,500 Safety Works sells each whistle for​ $13. It's been determined that each unit costs​ $6.25 to manufacture. How much is total budgeted operating expenses for the year ended​ 2020?

289625

Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master​ budget: MOH Costs Variable MOH Costs $1.75 per unit produced Fixed MOH Costs $225,000 Other​ Info: Units produced in 2020 45,000 Units sold in 2020 44,500 Safety Works sells each whistle for $10. ​It's been determined that each unit costs $7.50 to manufacture. How much is total budgeted MOH costs for the year ended​ 2020?

303750

Question content area top Part 1 Safety Works manufacturers safety whistle keychains. They have the following information available to prepare their master​ budget: MOH Costs Variable MOH Costs $2.00 per unit produced Fixed MOH Costs $232,000 Other​ Info: Units produced in 2020 51,000 Units sold in 2020 49,500 Safety Works sells each whistle for $15. ​It's been determined that each unit costs $6.75 to manufacture. How much is total budgeted MOH costs for the year ended​ 2020?

334000

Quality Corporation manufactures quality vases. Budgeted sales and production data for the vases are as​ follows: Month 1 budgeted unit sales 1,600 Month 2 budgeted unit sales 2,200 Month 3 budgeted unit sales 3,500 Month 1 budgeted unit production 2,100 Month 2 budgeted unit production 3,400 Month 3 budgeted unit production 3,800 Raw material required for each finished unit​ (in pounds) 1 Each vase requires one pound of clay in its manufacture. Quality Corporation has a policy that the inventory of clay at the end of each month needs to be equal to 20​% of the production needs for the following month. At the beginning of Month​ 1, 420 pounds of clay were in inventory. How many pounds of clay would Quality Corporation need to purchase in Month​ 2?

3480

Budget committees would include all of the following people except a A. shareholder. B. human resources manager. C. chief financial officer. D. product manager.

A

Managers may intentionally build slack into the budget A. to gain the resources they need in the event of budget cuts. B. because they are certain about the future. C. to make their performance look worse. D. to accomplish all of the above.

A

The income statement is part of which element of a​ company's master​ budget? A. The operating budgets B. The cash budget C. The financial budget D. The capital expenditures budget

A

The​ ___________ budget is the comprehensive planning document for the entire organization. A. Master B. Operating C. Production D. Sales

A

Riverside Corporation collects 60​% of a​ month's sales in the month of​ sale, 35​% in the month following​ sale, and 5​% in the second month following sale. Budgeted sales for the upcoming four months​ are: April budgeted sales $100,000 May budgeted sales $180,000 June budgeted sales $240,000 July budgeted sales $230,000 The amount of cash that will be collected in July is budgeted to be A.$ 93 comma 000 $93,000 B.$ 231 comma 000 $231,000 C.$ 203 comma 500 $203,500 D.$ 138 comma 000

B

What is the starting point of the master budget​ process? A. budgeted income statement B. sales budget C. cash budget D. production budget

B

Budgets are A. required by U.S. Generally Accepted Accounting Principles​ (GAAP). B. only used by large corporations. C. future oriented. D. prepared by the controller for the entire organization.

C

The usual starting point for a direct labor budget for a manufacturer is the A. direct materials budget. B. cash budget. C. production budget. D. sales budget.

C

Which of the following is a potential disadvantage of participative​ budgeting? A. Lower−level managers feel vested in the company when they have a voice in budgeting. B. Managers are more likely to be motivated by budgets they help create. C. Managers may build slack into the budget. D. Managers have more detailed knowledge to create realistic budgets.

C

Which of the following is the starting point for the master​ budget? A. The production budget B. The direct materials budget C. The operating expenses budget D. The sales budget

D

A company expects to receive which of the following benefits when it uses its budgeting​ process? A. The budget provides the​ company's managers with a benchmark against which to compare actual results for performance evaluation. B. The budget helps to motivate employees to achieve the​ company's sales growth and cost reduction goals. C. The planning required to develop the budget helps managers foresee and avoid potential problems before they occur. D. All the listed items are benefits of the budget process.

D

Which of the following budgets is the cornerstone of the master​ budget? A. budgeted balance sheet B. cash C. operating expense D. sales

D

Which of the following is a benefit of​ budgeting? A. Promote coordination and communication B. Force managers to plan C. Provide a benchmark to motivate employees D. All of the above

D

Question content area top Part 1 Pet Food Plus Company expects to sell 7,000 beefy dog treats in January and 10,000 in February for $2 each. What will be the total sales revenue reflected in the sales budget for those​ months?

jan 14000 feb 20000