Question : 31) What will be the Fair Score Company budgeted amount : 1186311

 

31) What will be the Fair Score Company budgeted amount of cost of goods sold?

A) $8,160,000

B) $6,800,000

C) $6,460,000

D) $6,120,000

E) $5,975,000

 

Use the information below to answer the following question(s).

 

Layne Cedar manufactures cedar chests. The estimated number of chests for the first three months of 2012 is as follows:

 

Month

Sales

January

10,000

February

14,000

March

13,000

 

Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month’s sales. April 2012 sales are expected to total 16,000 units.

 

32) What should be the budgeted number of chests produced in January 2012?

A) 8,800 chests

B) 11,200 chests

C) 13,000 chests

D) 14,200 chests

E) 14,700 chests

 

33) How many chests should be budgeted to be produced in the first quarter of 2012?

A) 37,000 chests

B) 44,800 chests

C) 41,800 chests

D) 38,800 chests

E) 48,400 chests

Use the information below to answer the following question(s).

 

Contempo Futon manufactures futons. The estimated number of sales for the last quarter of 2012 is as follows:

 

Month

Sales #

October

20,000

November

25,000

December

30,000

 

Beginning finished goods inventory should be equal to 30 percent of that month’s budgeted sales plus 10 percent of the following month’s budgeted sales. January and February 2013 sales are anticipated to be 15,000 futons in each month. The cost to produce a futon is $125.

 

34) What should be the number of futons Contempo Futon budgets to be produced in November?

A) 34,000 futons

B) 32,500 futons

C) 26,200 futons

D) 25,000 futons

E) 23,000 futons

 

35) How many futons will Contempo Futon budget to be produced in the three months?

A) 72,500 futons

B) 75,000 futons

C) 82,500 futons

D) 90,000 futons

E) 98,650 futons

 

36) What will be Contempo Futon’s cost of goods manufactured for December?

A) $3,937,500

B) $3,750,000

C) $2,812,500

D) $2,625,000

E) $3,187,500

Answer the following question(s) using the information below.

 

Furniture Inc. estimates the following number of mattress sales for the first four months of 2013:

 

Month

Sales

January

5,000

February

7,000

March

6,500

April

8,000

 

Finished goods inventory at the end of December 2012 is 1,500 units. Target ending finished goods inventory is 30% of the next month’s sales.

 

37) How many mattresses need to be produced in January 2013?

A) 4,400 mattresses

B) 5,000 mattresses

C) 6,500 mattresses

D) 7,100 mattresses

E) 5,600 mattresses

 

38) How many mattresses need to be produced in the first quarter (January, February, March) of 2013?

A) 18,500 mattresses

B) 19,400 mattresses

C) 20,900 mattresses

D) 22,400 mattresses

E) 18,000 mattresses

 

39) In going from the sales budget to the production budget, adjustments need to be made for

A) finished goods inventories.

B) overhead charges.

C) direct materials inventories.

D) sales returns and allowances.

E) changing from revenue to costs.

40) The budgeting process generally concludes with the preparation of the

A) cash budget.

B) selling expense budget.

C) budgeted financial statements.

D) research and development budget.

E) production budget.