Question :
108.The Gardner Company expects sales for October of $248,000. Experience : 1258643
108.The Gardner Company expects sales for October of $248,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,000. What is the amount of cash expected to be collected in October?
A. $124,000.
B. $178,600.
C. $179,800.
D. $111,600.
E. $246,800.
109.The Gardner Company expects sales for October of $248,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet?
A. $111,600.
B. $124,000.
C. $67,000.
D. $68,200.
E. $136,400.
110.Wichita Industries’ sales are 10% cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales. Assume that total sales for January are budgeted to be $50,000. What are the expected cash receipts for January from the current and past sales?
A. $18,500.
B. $51,500.
C. $51,900.
D. $55,500.
E. $60,500.
111.Wichita Industries’ sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales. Assume that total sales for January and February are budgeted to be $50,000 and $100,000, respectively. What are the expected cash receipts for February from current and past sales?
A. $80,500.
B. $71,500.
C. $34,500.
D. $61,500.
E. $59,500.
112.Which of the following must be prepared before the direct labor budget?
A. Budgeted income statement.
B. Merchandise purchases budget.
C. Capital expenditures budget.
D. Selling expense budget.
E. Production budget.
113.To determine the production budget for an accounting period, consideration is given to all of the following except:
A. Budgeted ending inventory.
B. Budgeted beginning inventory.
C. Budgeted sales.
D. Budgeted overhead.
E. Ratio of inventory to future sales.
114.Which of the following budgets is not a budget that a manufacturer would include in its master budget?
A. Sales budget.
B. Direct materials budget.
C. Production budget.
D. Merchandise purchases budget.
E. Cash budget.
115.A plan that states the number of units to be produced in a future period, based on the projected unit sales and inventory considerations, is the:
A. Sales budget.
B. Merchandise purchases budget.
C. Production budget.
D. Cash budget.
E. Manufacturing budget.
116.Cahuilla Corporation predicts the following sales in units for the coming four months:
AprilMayJuneJuly
Sales in Units240280300240
Each month’s ending finished goods inventory should be 40% of the next month’s sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B. The March 31 Raw Materials inventory has 200 pounds of B. Each month’s ending Raw Materials inventory should be 30% of the following month’s production needs. The budgeted production for May is:
A. 232 units.
B. 168 units.
C. 400 units.
D. 280 units.
E. 288 units.
117.Cahuilla Corporation predicts the following sales in units for the coming four months:
AprilMayJuneJuly
Sales in Units240280300240
Each month’s ending Finished Goods inventory should be 40% of the next month’s sales March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B. The March 31 Raw Materials inventory has 200 pounds of B. Each month’s ending Raw Materials inventory should be 30% of the following month’s production needs. The budgeted purchases of pounds of direct material B during May should be:
A. 1,422 lbs.
B. 288 lbs.
C. 1,854 lbs.
D. 276 lbs.
E. 1,008 lbs.
