Question :
61. A June sales forecast projects that 6,000 units going to : 1225659
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. Total June sales are anticipated to be:
A. $63,000.
B. $67,500.
C. $61,250.
D. $74,250.
E. $60,000.
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 units.
B. 1,240 units.
C. 6,840 units.
D. 4,000 units.
E. 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 budget.
B. Capital expenditures budget.
C. Rolling budget.
D. Sales budget.
E. 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 budget.
B. Merchandise purchases budget.
C. Sales budget.
D. Cash budget.
E. Capital expenditures budget.
65. A plan showing the planned sales units and the revenue to be derived from these sales, and is the usual starting point in the budgeting process, is called the:
A. Operating budget.
B. Business plan.
C. Income statement budget.
D. Merchandise purchases budget.
E. 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 budget.
B. Operating budget.
C. Capital expenditures budget.
D. Selling expense budget.
E. 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 the purchase of suits? Each suit has a cost of $75.
A. $750,000.
B. $900,000.
C. $1,050,000.
D. $1,200,000.
E. $1,350,000.
69. A sporting goods store purchased $7,000 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. $5,000.
B. $7,000.
C. $8,000.
D. $9,000.
E. $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:
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. 1,860.
B. 1,900.
C. 1,940.
D. 1,980
E. 2,320.
