Question : 107.A company determined that the budgeted cost of producing a : 1311835

107.A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in June, and the company desires to have 120,000 units on hand on June 30. The budgeted cost of goods manufactured for June would be

a.$7,800,000.

b.$11,400,000.

c.$9,000,000.

d.$10,200,000.

108.Of the following items, which one is not obtained from an individual operating budget?

a.Selling and administrative expenses

b.Accounts receivable

c.Cost of goods sold

d.Sales

109.Which of the following statements about a budgeted income statement is not true?

a.The budgeted income statement is prepared after the financial budgets are prepared.

b.The budgeted income statement is prepared on the accrual basis of accounting.

c.The budgeted income statement can be prepared in a multiple-step format.

d.The budgeted income statement is prepared using the individual operating budgets.

110.A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted:

Wages Expense$150,000

Purchase of office equipment72,000

Selling and Administrative Expenses48,000

Depreciation Expense36,000

The budgeted cash disbursements for August are

a.$648,000.

b.$426,000.

c.$696,000.

d.$732,000.

111.Astor Manufacturing has the following budgeted sales: January $120,000, February $180,000, and March $150,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:

a.$168,000.

b.$159,000.

c.$157,500.

d.$150,000.

112.Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August’s cash disbursements for materials purchases be?

a.$135,000

b.$157,500

c.$202,500

d.$210,000

113.The single most important output in preparing financial budgets is the

a.sales forecast.

b.determination of the unit cost of the product.

c.cash budget.

d.budgeted income statement.

114.Which of the following does not appear as a separate section on the cash budget?

a.Cash receipts

b.Cash disbursements

c.Capital expenditures

d.Financing

115.The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

a.the prior years.

b.management’s minimum required balance.

c.the amount needed to avoid a service charge at the bank.

d.the industry average.

116.Beginning cash balance plus total receipts

a.equals ending cash balance.

b.must equal total disbursements.

c.equals total available cash.

d.is the excess of available cash over disbursements.