Question : 68.A plan that reports the units or costs of merchandise : 1258665

68.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.

69.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.

70.A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n):   

A. Sales budget.

B. General and administrative budget.

C. Capital expenditures budget.

D. Selling expense budget.

E. Purchases budget.

71.Which of the following factors is least likely to be considered in preparing a sales budget?   

A. Business capacity.

B. Forecasted economic and market conditions.

C. Prediction of unit sales.

D. The capital expenditures budget.

E. Proposed selling expenses, such as advertising.

72.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 if 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.

73.A sporting equipment store expects to purchase $8,000 of ski boots in October. The store had $2,000 of ski boots in merchandise inventory at the beginning of October, and expects to have $3,000 of ski boots in merchandise 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.

74.Masterson Company’s budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month’s ending raw materials inventory should equal 30% of the following month’s budgeted materials. The January 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April?   

A. 71,600 liters.

B. 39,200 liters.

C. 57,600 liters.

D. 56,000 liters.

E. 54,800 liters.

75.A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2kg of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter’s material needs. Beginning inventory for this material is 18,000 kg and the cost per kg is $8. What is the budgeted materials purchases cost for the first quarter?    

A. $720,000.

B. $672,000.

C. $576,000.

D. $729,600.

E. $864,000.

76.A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called:   

A. Just-in-time inventory.

B. Budgeted stock.

C. Continuous inventory.

D. Capital stock.

E. Safety stock.

77.Alliance Company’s budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $2.50 per pound. Each month’s ending raw materials inventory should equal 40% of the following month’s budgeted materials. The January 1 inventory for this material is 38,400 pounds. What is the budgeted materials need in pounds for January?   

A. 102,400 pounds.

B. 96,000 pounds.

C. 57,600 pounds.

D. 140,800 pounds.

E. 83,200 pounds.