Question : 61. A June sales forecast projects that 6,000 units going : 1256687

61. A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. Merchandise purchases for June are projected to include how many units?

A.  6,000 unitsB.  6,150 unitsC.  5,850 unitsD.  7,150 unitsE.  6,500 units

62. Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30 inventory was 1,800 units. Budgeted purchases are:

A.  5,040 unitsB.  1,240 unitsC.  6,840 unitsD.  4,000 unitsE.  5,800 units

63. A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

A.  Cash budgetB.  Capital expenditures budgetC.  Rolling budgetD.  Sales budgetE.  Production budget

64. A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:A.  Selling expenses budgetB.  Merchandise purchases budgetC.  Sales budgetD.  Cash budgetE.  Capital expenditures budget

65. A plan showing the units of goods to be sold and the revenue to be derived from sales, that is the usual starting point in the budgeting process, is called the:A.  Operating budgetB.  Business planC.  Income statement budgetD.  Merchandise purchases budgetE.  Sales budget

66. A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n):A.  Sales budgetB.  Operating budgetC.  Capital expenditures budgetD.  Selling expense budgetE.  Purchases budget

67. Which of the following factors is least likely to be considered in preparing a sales budget?A.  Plant capacity.B.  General economic and industry conditions.C.  Past sales volume.D.  The capital expenditures budget.E.  Proposed selling expenses, such as advertising.

68. A department store has budgeted sales of 12,000 men’s suits in September. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 suits. What is the dollar amount of purchase of suits?  Each suit has a cost of $75.A.  $750,000B.  $900,000C.  $1,050,000D.  $1,200,000E.  $1,350,000

69. A sporting goods store purchased $7,000 worth of ski boots in October. The store had $3,000 of ski boots in inventory at the beginning of October and expects to have $2,000 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?A.  $5,000B.  $7,000C.  $8,000D.  $9,000E.  $10,000

70. Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the current year: 

Jan.

Feb.

March

April

Sales in units

1,700

1,900

2,100

1,600

Ending inventory for each month should be 20% of the next month’s sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?A.  1,860B.  1,900C.  1,940D.  1,980E.  2,320