Question :
11) The first three schedules to complete when preparing the : 1186309
11) The first three schedules to complete when preparing the master operating budget are the
A) revenue budget, production budget, and direct materials purchases and usage budget.
B) costs of goods sold budget, production budget, and cash budget.
C) revenue budget, overhead budget, and production budget.
D) revenue budget, cash inflows, and production expenditures.
E) revenue budget, costs of goods sold budget, and production budget.
12) A production budget expressed in units is equal to
A) budgeted sales plus beginning finished goods inventory plus targeted ending finished goods inventory.
B) budgeted sales less beginning finished goods inventory less targeted ending finished goods inventory.
C) budgeted sales less beginning finished goods inventory plus targeted ending finished goods inventory.
D) budgeted sales plus beginning finished goods inventory less targeted ending finished goods inventory.
E) last year’s sales plus beginning finished goods inventory plus targeted ending finished goods inventory.
13) Unit sales of Product 1 are currently 20,000, while unit sales of Product 2 are currently double those of Product 1. What will the company’s sales forecast be assuming sales of Product 1 increase by 10 percent and those of Product 2 go up by 8,000 units from the current level?
A) 20,000 and 40,000 units, respectively
B) 22,000 and 44,000 units, respectively
C) 22,000 and 46,000 units, respectively
D) 76,000 units
E) 22,000 and 48,000 units, respectively
14) For next year Flexsteel Company has budgeted sales of 40,000 units, target ending finished goods inventory of 2,000 units, and a beginning finished goods inventory of 1,200 units. All other inventories are zero. How many units should be produced?
A) 39,200 units
B) 40,000 units
C) 41,800 units
D) 42,800 units
E) 40,800 units
15) Randy Company has budgeted sales of 12,000 units, target ending finished good inventory of 2,000 units, and a beginning finished goods inventory of 600 units. How many units should be produced?
A) 14,600 units
B) 13,400 units
C) 10,600 units
D) 9,400 units
E) 7,250 units
16) Cooper Company has a production schedule of 18,000 units and a budgeted sales volume of 20,000 units for the current year. In addition, 4,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory?
A) 20,000 units
B) 14,000 units
C) 6,000 units
D) 2,000 units
E) 1,900 units
17) The direct materials usage budget is based on
A) the units to be produced during a period.
B) budgeted sales dollars.
C) the predetermined factory overhead rate.
D) the amount of labour hours worked.
E) direct materials purchases.
18) Direct material purchases equal
A) usage plus production needs.
B) production needs plus target ending inventories.
C) beginning inventories plus production needs.
D) usage plus target ending inventories less beginning inventories.
E) the number of units to be produced times the amount of direct material in each unit.
19) Manufacturing overhead costs for the budget include
A) factory utility costs.
B) direct materials and supervision.
C) direct labour and direct materials.
D) sales supervisors’ salaries.
E) direct labour and indirect labour.
Use the information below to answer the following question(s).
Berry’s Boxes manufactures boxes. It expects to sell 20,000 boxes in 2012. The company had enough beginning inventory of direct materials to produce 24,000 units. Beginning inventory of finished units totalled 2,000 with a target ending inventory of 2,500 units. The boxes sell for $3.00 and the company keeps no work-in-process inventory. Direct materials costs for each box total $1.00 while direct labour is $0.50. Factory overhead is $0.20 per box.
20) What will be Berry’s Boxes budgeted revenue?
A) $54,000
B) $60,000
C) $78,000
D) $79,500
E) $72,000
