Question :
71.Winslow Inc. determined it had sold products during the month : 1302852
71.Winslow Inc. determined it had sold products during the month but not collected all of the amounts owed. Where will this amount owed be reflected in the master budget for the month?
A.On the budgeted balance sheet in the assets section
B.On the budgeted income statement
C.As part of the cash receipts section of the cash budget
D.As a reduction of inventory to be produced in the production budget
72.When using a computer program to do budgeting, which one of the following is not true?
A.A company can easily run “what if” analysis if the spreadsheet is well designed.
B.Cash flow problems generally erupt since cash is difficult to track and predict.
C.Worksheets should be formula driven so that a change in sales will update all schedules.
D.A change in the sales budget should carry throughout all the individual budgets.
73.SalaRita’s sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows:
June $200,000
July 120,000
August 150,000
How much is total ‘Accounts Receivable’ at the end of August?
A.$61,200
B.$73,440
C.$99,600
D.$108,000
74.Budgeted sales (in units) for the Rockwall Energy Drink Company are as follows:
September 45,000 units
October 60,000 units
November 40,000 units
December 75,000 units
The company wishes to have 10% of the next month’s sales on hand at the end of each month. How much is budgeted production for November?
A.43,500 units
B.40,000 units
C.47,500 units
D.36,000 units
75.SalaRita’s sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows:
June $200,000
July 120,000
August 150,000
How much is total cash collected during August?
A.$145,920
B.$105,120
C.$88,800
D.$144,000
76.Wisdom Toys has budgeted sales and production over the next quarter as follows:
Unit SalesProduction
September 43,000 44,400
October 50,000 52,800
November 64,000 61,200
The company requires that 20% of the next month’s sales in units are on hand at the end of each month. December sales are expected to be 50,000 units. How many video games are in inventory at October 31?
A.12,800 units
B.34,400 units
C.4,000 units
D.10,000 units
77.Washam Company must maintain a minimum cash balance of $25,000. At the beginning of June the company’s cash balance was $17,000. Budgeted cash receipts for June are $150,000 and budgeted cash disbursements are $201,000. Budgeted net income for July totals $11,000. How much will Washam Company need to borrow by the end of June?
A.$43,000
B.$34,000
C.$9,000
D.$59,000
78.Alpha Caps Company has budgeted production of 14,000 units and sales of 16,500 units in January. Each unit requires 12 minutes of labor. The standard labor rate is $13.00 per hour. How much are total budgeted direct labor costs for January?
A.$36,400
B.$21,840
C.$42,900
D.$2,184,000
79.Each unit produced by Terra Electronics requires 4 pounds of raw materials. The raw materials inventory must be equal to 10% of the next month’s production. Each pound of raw materials costs $2.00. Budgeted production information follows.
April 28,000 units
May 30,000 units
June 25,000 units
How much are budgeted purchases of raw materials for May?
A.$118,000
B.$236,000
C.$221,000
D.None of the answer choices are correct.
80.Shorstein Manufacturing Company purchases raw materials on account each month. Purchases are paid for according to the following schedule:
30% is paid in the month of the purchase
60% is paid in the month following the purchase
10% is paid in the second month following the purchase
Budgeted purchases are as follows:
March $75,000
April $90,000
May $85,000
How much will be reported for Accounts Payable for material purchases as of the end of May?
A.$59,500
B.$68,500
C.$87,000
D.$95,500
